Instant Reaction: Mortgage Rates, August 13, 2020

Mortgage rates bounced up lightly this week to average 2.96% from 2.88% the prior week, but this should have virtually no impact on home buying. Over 95% of metro markets are experiencing price growth as buying power has gone up due to rates still being well below those of one year ago. Inventory is tight but sales will still inch higher as new listings are swiftly taken by buyers. Going forward, rates could still come down due to the super accommodative monetary policy that has kept the benchmark Treasury yields at under 1%. But a slight pickup in inflation is worth watching, as inflation can push up interest rates.