After falling to the lowest levels since November 11, rates picked up a little this week. The 30-year fixed rate mortgage increased 2 basis points to 3.24% while the 15-year mortgage increased 4 basis points to 2.59%.
The week between Christmas and New Year’s will most likely prove uneventful. Bonds aren’t going to make any moves until it’s clear what the effects of omicron will be on the economy. Stocks also tend to lie low around this time of year with a 30% reduction in trading volume as well as an average gain of 1.7% known as the “Santa Claus Rally.” Also awaiting further news is the forecast for housing inventory in 2022. If supply follows typical seasonal patterns, we can expect the low to be in December followed by a swift recovery in January or February. However, if inventory waits until March or April to bottom out, we may be in for another crazy year of multiple bids and price surges.