While many factors remain unknown with the economy coming out of the post-pandemic shutdowns, mortgage rates have remained extremely stable. Refinance transactions saw robust activity thru the first four months of the year with rates at historic lows.

As rates moved slightly higher in mid-April with the 10 Year Treasury yield hovering around 1.60, the demand for refinances started to diminish. The purchase market continued to thrive during this timeframe as tight inventory levels persisted.

As news of the Delta variant spread in early July, it cast some doubt on the economic rebound for the second half of the year. With this news, 10 Year Treasury yields began to trend back to the 1.20-1.30 level and rates followed this correction down as well.

Purchase rates for 30-year mortgages have been hovering around the high 2’s to low/mid 3’s depending on the FICO’s, down payment amount and type of occupancy. Refinance rates are just slightly higher than the average 30-year purchase rates.

The Federal Reserve just to recently released their forecast on interest rate increases and it appears they are in “no hurry” to make such a move, as the return to a robust economy remains influx.

With so much uncertainty around us, it appears there is one thing we can count on- mortgage rates to remain on course and steady for the remainder of the year.

Kim Shelpman is the branch manager of Carolina One Mortgage. She has more than 35 years of experience in the mortgage and building industry.