Market Update: Rates Trend Higher; Pending Home Sales Coming Up This Week

Blog posted On December 26, 2022

Last week, mortgage rates inched higher. It’s important to remember that rate movement can be more volatile during the holidays but in the long run, the movement last week and this week won’t matter as much. “In general, we're not paying too much attention to mortgage rate volatility until the 2nd week of January,” writes Matthew Graham of Mortgage News Daily. “During winter holidays, it becomes increasingly apparent that something is "different,"” Graham notes. “Those differences can manifest themselves in different ways but one of the most apparent is with higher volatility.”

This week, the pending home sales index for November is scheduled for release, which could be an important update regarding future sales. The pending home sales index tracks changes in the number of homes that are under contract but not yet closed. In October, pending home sales slipped 4.6% overall. Though a drop, this was still higher than expectations. Pending sales in the Midwest increased by 3.3%. October was a particularly challenging month due to the higher mortgage rates but since then, rates have cooled significantly.

As we approach the new year, rates are expected to make an overall trend lower in 2023. If you’ve already locked in your mortgage rate, ask us about our one-time float down option!

Sources: Reuters, Mortgage News Daily