【Zillow】Mortgage Rates Hold Firm Despite Changes in Bond Market

Mortgage rates have held firm this week, despite notable changes in the bond market that typically would drive rate changes.

In a volatile stretch due to the fate of the next round of fiscal relief, among other factors, Treasury yields trended upward in recent days to reach their highest levels in more than three months. Normally a move like this would be accompanied by an uptick in mortgage rates, but so far, rates have barely budged. In fact, rates fell slightly in the last two days and remain close to all-time low levels. Typically, Treasury yields and mortgage rates have a close relationship, with a movement in the former usually dictating a change to the latter. However, the pandemic has frayed this relationship, and mortgage rates remain much higher than you would expect them to be – given the level of Treasury yields.

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