The bond market has been slow during the Christmas holiday week, leading to increased random volatility in mortgage rates. This means that rates can move up or down without a clear reason.
Today was an example of this unpredictability. At the start of the day, bonds were at their weakest levels in months, which meant mortgage rates began near those lows. However, by mid-day, bonds improved steadily, causing lenders to adjust rates upwards and returning them to Tuesday’s levels, with some even dipping below last week’s highs.
Top-tier conventional 30-year fixed-rate mortgages are currently hovering around 7.125%. Despite the volatility, most lenders made friendly adjustments to their rates today, reflecting a stabilizing market trend.
Source: https://www.mortgagenewsdaily.com/markets/mortgage-rates-12262024