Mortgage rates fell back to all-time lows this week as the market continues to weigh the economic risks posed by recent surges in COVID-19 case counts. The downward movements in rates were very consistent this week, with rates showing modest improvements each of the last five business days.
The steady declines suggest that investors are keeping a very close eye on coronavirus case counts and keenly awaiting evidence of how the economy responds as a result of the outbreak. If the uptick in cases does indeed prevent states or cities from continuing their plans to reopen, or even prompt more closures, then rates would likely plunge further and reach new lows. But, if the economy can withstand this recent wave and continue its slow reversion to “normal”, then rates would likely head back upward.
June’s jobs report will be the first referendum on the economy’s resilience to the recent outbreak, and it’s likely that rates will react to the news one way or another.
Yahoo