Mortgage rates were flat this week, holding firm near levels just above historic lows. In recent weeks, mortgage rates ticked upward, reacting to fiscal stimulus bill progress and signs of moderate improvement in the economy.

However, rates leveled off in recent days, rising slightly following a lackluster jobs report and slipping on Wednesday after inflation data showed price pressures remained tame. Modest inflation should help keep mortgage rates low by limiting the likelihood that central bank will tighten its monetary policy anytime soon – through increased short-term interest rates or reduced asset purchases.

All told, after a topsy-turvy start to the year, mortgage rates have stabilized of late and appear to be waiting for more signals of the economy’s path forward before heading definitively in either direction. In the near-term, that path forward will depend largely on the fate of the next wave of fiscal relief and COVID-19 vaccine developments.