Last week ultimately ended up being great for mortgage rates, but only after a somewhat abrupt increase heading into the election. On Tuesday, the average lender raised rates at the fastest pace in weeks to prepare for post-election volatility. Wednesday and Thursday saw significant improvements before rates leveled off on Friday.
The new week began in a bad way before lenders were even out of bed. Early morning news about Pfizer's late stage vaccine trial sent financial markets reeling. Stocks surged to all-time highs and bonds (which dictate rates) lost ground at the fastest pace in months. The average mortgage lender raised rates by at least as much as they did last Tuesday, thus erasing a majority of the improvement seen since then.
All of this is occurring in a historically low rate range. Purchase mortgages are at all-time lows (or close to it) and refinance are close. Today's increase means many refi candidates are closer to 3% for a top tier 30yr fixed quote. The average purchase is roughly 0.25% lower, but different lenders have different gaps between the two.