After falling sharply for about a week, mortgage rates leveled off in recent days and ultimately finished the last seven days down just slightly.
Despite the modest movement overall, it was still a notable week for the mortgage rates. Continuing the downward momentum that had been building for the better part of a week, rates fell to all-time lows as upticks in coronavirus cases across the country left market participants skeptical of the economic recovery's sustainability. This sparked a sell-off in stocks and a flight to the safe haven of bonds – something that normally pushes mortgage rates lower.
Now, having spent the last few days at essentially the same level, it appears that we have reached a turning point of sorts for mortgage rates. More bad news regarding the uptick in coronavirus cases would likely send rates back downward, possibly to new lows. However, rates could just as easily begin to trend upward again, particularly if key economic data or measures to contain or treat the virus show meaningful improvements.
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