Instant Reaction: Mortgage Rates, August 20, 2020

Mortgage rates moved up slightly this week to an average 2.99% from 2.96% the prior week. However, the 30-year fixed-rate mortgage is still hovering at near-record lows. This increase in mortgage rates is not expected to have any impact on home buying activity. With these ultra-low rates, home sales are rising since housing is more affordable compared to a year ago. In the meantime new construction ramped up significantly, easing the housing shortage. Going forward, rates could still come down due to the super accommodative monetary policy that has kept the benchmark Treasury yields at under 1%.