Slowly and steadily, the race wins and Mortgage rates have made slow, steady progress back from recent long-term highs in late March. During this time, the average conventional 30-year fixed interest rate has fallen from 0.125 to 0.25%, depending on the lender. This is not a bad two week move, and especially in an environment where lenders have the right to be defensive. After all, there have been numerous “false starts” for the kind of winning streak we’re enjoying right now.
In addition, with such tightly tied rates Covid and the economy“Higher rates in 2021” was a simple thesis for market observers. Anything that runs counter to this has to come up with a convincing explanation. It is no surprise, then, to see the J&J vaccine “pause” on the news this morning, just before interest rates fell slightly again.
Danger although. These are small movements in the overall picture. If progress against the pandemic is not rightly derailed, we cannot rely on the good times to stay too long. In fact, this could be as simple as taking a break from the prevailing trend before deciding on the pace and timing of the next move.