Interest rates on long term bonds are the result of inflation expectations as well as prospects of future GDP growth. All else equal, higher anticipated impending inflation raises interest rates, as does better projected economic growth. If long term bonds rise because markets anticipate strong growth, that is good as better growth, higher employment, and more investment, can more than compensate for higher interest rates. If, however, rates rise simply because of inflation, not good!

As expected, mortgage rates continued to inch up but are still hovering around 3.0%, keeping interested buyers in the market. However, residential construction has declined for two consecutive months and given the very low inventory environment, competition among potential home buyers is a challenging reality, especially for first-time home buyers.

As the economy improves given labor market optimism, continued vaccination roll-out and additional stimulus pending, mortgage interest rates increased this week. But even as rates rise modestly, the housing market remains healthy on the cusp of spring home buying season. Home buyer demand is strong and, for homeowners who have not refinanced but are looking to do so, they have not yet lost the opportunity

As the market reacts to a new administration in Washington and COVID-19 driven economic malaise, mortgage rates continued to decrease this week, just slightly. Even as house prices increase at the fastest rate we’ve seen in years, competition to buy is strong given the low inventory that exists across the country. The fact that there are not enough homes to meet demand is going to be an ongoing issue for the foreseeable future.

The year-long slide in mortgage rates seems to be ending as rates have flattened over the last month and the economic rebound has slowed. But with near record low rates, buyer demand remains robust with strong first-time buyers coming into the market. The demand is particularly strong in more affordable regions of the country such as the Midwest, where home prices are accelerating at the highest rates over the last two decades.

This year has been anything but normal in so many ways.? Uncertainty in the economy lingers and thus mortgage interest rates remain near record lows.? We are seeing a refinance boom like none before.? Not only that, but these rates continue to incentivize potential buyers and the home buying season, which shifted from spring to summer, will likely continue into the fall.

Homebuyer demand remains strong, especially for those in search of an entry-level home where the improvement in affordability via lower mortgage rates has a material impact. Even with this week?s uptick, very low rates are providing a significant boost to the housing market that continues to hold up well during this time of uncertainty.

Mortgage rates fell below 3.0% for the first time in 50 years!! The drop has led to increased home buyer demand and refinance boom like none ever seen. These low rates have been capitalized into asset prices in support of the financial markets. However, the countervailing force for the economy has been the rise in new Covid-19 virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of becoming permanent job losses.? Crazy times!!!

The summer is heating up as record low mortgage rates continue to spur homebuyer demand.? And refinancing continues to bubble over.? However, it remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth.? Crazy times, unpredictable!!!!!!

It has been a wild roller coaster ride for mortgage interest rates!? On March 9th rates took a sudden drop, sparking a refinance boom like lenders have never seen.? Loan Officers were taking calls into the nighttime hours as borrowers were trying to take advantage of the drop.? Within 2 days, those low rates were gone, and rates spiked from 2.875% on a 30 year fixed rate loan to 4.00%!!? Within 48 hours.? It was crazy.? Then rates started trickling back down and within 2 weeks, by the end of March, mortgage interest rates were back down to around 3.0%.? They have held there for the most part since, and the refinance boom has continued.? What will they do in the future?? No one knows, but as long as they last, it is a great time to buy or refinance!