Mortgage rates fell to new lows this week, as broad market uncertainty continues to keep downward pressure on rates.

Even as the stock market has improved in recent weeks – normally prompting an upward move in mortgage rates – the still-uncertain outlook for the economy and seemingly low risk of inflation has kept bond yields in check, with mortgage rates following suit and slowly making their way to new all-time lows. But despite recent improvements, rates are still not nearly as low as the bond market would suggest they should be. This is explained — in part — by the tight lending restrictions in the mortgage industry. Borrowers with great credit who are seeking a straightforward loan are being quoted at significantly lower rates than less creditworthy borrowers, resulting in a range of rates that tells a broader story than just the average.

Looking ahead, it’s unlikely that this dynamic of low overall rates and a wide range of quotes will change until there is more substantial progress with the coronavirus and broader economy.