Posted To: Mortgage Rate Watch
Interest rates can’t seem to catch a break. February was one of only a handful of months in the past 2 decades that resulted in a 0.50% mortgage rate spike. Despite hopes to the contrary, March isn’t off to a great start either. Paradoxically, this rate drama means everything is going according to plan. Why is that? Because the “plan,” in this case, is to win the war on the pandemic. That’s a multi-faceted issue, of course, and the war is far from over. But most of the battles have deleterious effects on rates when they’re going well. At the most basic level, as covid recedes, the economy improves and a strong economy is the quintessential inspiration for rising rates. Inflation is a closely related concept to general economic growth because more “demand” in the economy results in higher prices…(read more)
