Why December's Rate Volatility is Your Best Chance to 'Buy the Dip'

Don't Wait for 5%: Why December's Rate Volatility is Your Best Chance to 'Buy the Dip'

As we officially step into December, let’s talk about a market truth: the holiday season often brings with it incredible, fleeting opportunities for borrowers. After a solid run in November saw mortgage rates drop to their best levels since the summer, we are now sitting in a very unique window.

The Good News You Need to Hear

You’ve heard the headlines: rates have eased. Right now, the 30-year fixed rate is holding comfortably near the low end of the 2025 range. For anyone who put their home search on pause when rates peaked over the summer, this represents a significant increase in your buying power and a measurable drop in your monthly payment.This improvement is a direct result of market optimism that the Federal Reserve may be done raising rates and could potentially look at cutting them next year.

The December Warning: Volatility is Coming

Here is where we move from good news to actionable advice: this calm, lower-rate environment is unlikely to last long. The market has been quiet due to the holiday weekend, but as the bond market fully reopens this week, we are bracing for significant volatility.

Upcoming economic reports—specifically key updates on inflation and employment—will cause rates to swing rapidly. These swings are not necessarily a bad thing; they create those brief "buy the dip" moments we want to capitalize on. However, if the data is stronger than expected, we could just as easily see rates quickly reverse and climb back up.

Your Strategy: Lock in the Savings

The biggest mistake a borrower can make right now is waiting for the mythical "5% rate" before moving forward. The market is giving you an opportunity to lock in a genuinely great rate in the low 6% range, securing significant savings compared to the last few months.

My job as your mortgage broker is to navigate this volatility. By getting your pre-approval complete now, we can track the daily lender sheets. When that rate dips for just a few hours—as it often does during volatile weeks—your file will be ready to lock in instantly, securing your savings before the market corrects itself.

Don't let market swings pass you by. The time to prepare is now, so you are ready to act the moment the rate you want appears.

Ready to secure your rate before the market swings? Contact me today to start or update your pre-approval so we can catch the next great rate drop!