Mortgage rates held their ground today, with the average lender in roughly the same shape as they were on Friday. Incidentally, that’s great! When it comes to the best-case scenario conventional 30yr fixed quote, rates are still remarkably close to the all-time lows seen two weeks ago. Scenarios with additional risk factors (jumbo balances, lower credit, lower equity, or investment properties), the landscape is far more varied. For those scenarios, rates are much farther away from all-time lows.
Will rates be able to remain at these levels or perhaps even set new all-time lows?
More and more, this depends entirely on the course of a potential “2nd wave” of coronavirus impacts. Simply put, if too many people end up sick or in the hospital due to COVID-19, interest rates would likely stay low or even improve. The opposite logic does not perfectly apply. Rates can avoid a massive spike even if coronavirus numbers gradually improve.