Mortgage rates trended slightly higher this week, reaching their highest levels in a month.

The overall uptick was minor as rates continue to occupy a very narrow range, but, the upward momentum in rates was an eye opener after weeks of very little change. Growing confidence among investors for a new fiscal spending package lifted bond yields in recent days to their highest levels in months, a move that nudged mortgage rates higher. This optimism is unlikely to abate in the days before the federal election, so a near-term downward move in mortgage rates is probably not on the horizon. That said, investors are no doubt aware of the substantial levels of risk posed by the recently rising coronavirus cases across much of the country.

This uncertainty will likely keep mortgage rates mostly stable in the coming days, but with major events looming, more substantive moves in rates could be in store in the coming weeks.