After falling this week, mortgage rates are at their lowest levels in the last two weeks and remain near all-time lows. The market remains very tight for borrowers with less-than-excellent credit, or for those looking for atypical loans.
However, the general improvement is a welcome sign for the housing market that has been showing other signs of stability in recent weeks, despite a slew of devastating data emerging from elsewhere throughout the economy. Also contributing to the decline in rates, which fell sharply on Wednesday, were comments made by Federal Reserve Chair Jerome Powell, in which he offered a more pessimistic economic outlook and shed light on the risks posed by drawn-out recessions. The gloomy remarks led investors to seek out the safety of Treasuries, movements that generally push mortgage rates lower.
The combination of ongoing uncertainty and stabilization in some parts of the market suggest that average rates are likely to remain low, but rates associated with riskier mortgages are unlikely to fall much.