In the face of a possible V-shaped economic recovery, rates leapt another 10 basis points. The 30-year fixed rate mortgage increased 12 basis points to 3.38% while the 15-year increased 13 basis points to 2.75%.
With the exception of retail sales which fell 3.0% in February (likely due to poor weather conditions), economic reports have been trending upwards. The Volatility Index (VIX), otherwise known as Wall Street’s “Fear Gauge,” is now at 19.49. In comparison, the VIX was at a near-record high of 85.47 in March 2020. Additionally, the Global Fund Manager Survey shows that COVID-19 is no longer the biggest “tail risk” for investors after 12 continuous months of holding that title. As a result, the Federal Reserve is unlikely to make any significant changes at this week’s meeting.