Mortgage Rates Rise Slightly, But Look Poised to Remain Low for a While

Average mortgage rates rose slightly over the last seven days, but remain near all-time lows.

After a period of immense market uncertainty that at times led to unpredictable rate movements, the relationship between bond yields and mortgage rates appears to be rekindled. Financial volatility has notably decreased in recent weeks, resulting in steady improvements in the stock market, and more predictable – albeit modest – movements in bond markets. The eased strains in financial markets have also resulted in mortgage rates remaining fairly flat in the last couple of weeks and are generally calmer following the turmoil experienced in the early days of the coronavirus outbreak.

As stock markets have performed strongly in recent weeks, the fact that rates have fallen and remained steady suggests that rates are poised to remain low, boding well for potential homebuyers.