The 30-year fixed rate mortgage dropped 14 basis points to 3.14% while the 15-year mortgage dropped 13 basis points to 2.52%.
What we’re seeing now is investors pricing in the risk of the omicron variant of COVID, which may be resistant to current vaccines. As a result Treasury yields fell on Friday before making a small recovery Monday. Also on the move are pending home sales. Pending sales represent signed contracts for existing homes and are usually 1-2 months behind existing home sales. In September, sales suffered due to accelerating home prices and buyer fatigue. However, in October, they made a swift comeback, increasing 7.5% month-over-month. This happened in spite of rising mortgage rates as buyers in good financial positions hoped to lock in a rate before they move up again.