Mortgage rates fell this week this week as pandemic-related developments helped push rates back to all-time lows.

After spiking in early January, mortgage rates have spent the last couple weeks trending consistently lower, as the continued spread of the virus, the introduction of new, more virulent variants, and a thus-far sluggish rollout of the vaccine all injected fresh uncertainty into markets. Uncertainty surrounding the latest proposed fiscal relief plan also lowered investors’ expectations for higher bond yields, and thus mortgage rates. Despite some signals that it continues to make gradual improvements, the fact remains that the path forward for the economy will be dictated by the pandemic. On Wednesday, Federal Reserve Chair Jerome Powell reiterated that notion, stating that the pandemic remains the biggest hindrance to the economy and that, while the economy is improving, it still needs to demonstrate substantial progress before any monetary policy tightening would occur — which would place upward pressure on rates.

All told, this week was yet another reminder that the pandemic continues to call the shots when it comes to mortgage rates and that sustained upward movements are unlikely until it is contained.