Interest rates fluctuate daily but generally move in tandem with the 10 Year United States Treasury rate. However, in times of great economic or political uncertainty, the HUD and USDA mortgage rates can move higher, even as Treasury Rate drops. This happened in March and into April when the volatility of the financial markets due to Covid-19 caused interest rates to lag behind the quickly decreasing Treasury Rate. The good news is that the markets have, to a large extent, stabilized and spreads are coming in. This equates to lower mortgage rates for our clients. We hope it lasts!
