Mortgage Rates Fall As Covid-19 Cases Rise

Mortgage rates fell this week as coronavirus cases rose and hope for more fiscal relief dwindled sapping rising optimism among investors.

After steadily climbing earlier in the month to reach their highest levels since June, bond yields took a sharp turn downward in recent days as investors grew more fearful of states having to implement new lockdown measures due to rapidly rising COVID-19 case volumes. The unraveling of discussions around a fresh wave of fiscal relief also dampened investor optimism and pushed bond yields lower. Mortgage rates trended slightly downward as a result, although they did so only slightly, continuing a months-long trend of modest downward movements relative to bond yields. Looking beyond pandemic-specific developments, other news and data do pose risks to mortgage rates going forward.

Investors are sure to react to Thursday's release of Q3 GDP figures and, of course, the results of next week's federal election could certainly impact market activity.

 

 

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