Mortgage rates moved modestly lower today, bringing the average lender very close to all-time lows.  The caveat continues to be that day-to-day rate changes have been small ever since hitting the confirmed all-time lows on June 11th.  Realistically, if you locked in a rate any time in the past 4 weeks, you did very well.  The same is true today, and it will continue to be true as long as the broader financial market remains concerned about the resurgence in covid-19 cases in several states.

Mortgage rates are primarily driven by the bond market.  They share many similarities with US Treasuries.  When investors are feeling cautious or seeking to prevent the loss of capital, the bond market offers a safe haven.  When demand for bonds increases, bond prices rise and bond yields fall.  “Yield” is another word for “rate.”  In other words, the more investors want to buy bonds, the more we see downward pressure on rates, all other things being equal.  

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