Monday’s bond market has opened in positive territory to start the final week of the year on a positive note. Early stock losses may be helping to boost bonds this morning. The Dow has lost 199 points and the Nasdaq is down 173 points. The bond market is currently up 4/32 (4.11%), which should keep this morning’s mortgage rates close to Friday’s early pricing.

There is nothing of relevance scheduled for today. We are seeing what appears to be a year-end rally in bonds as traders close out positions heading into the new year. The rest of the week has very little in terms of events that may affect mortgage rates. It will be another holiday-shortened trading schedule for bonds due to the New Year's Day holiday and the preceding early close.

One of this week’s two events that may influence mortgage rates comes tomorrow afternoon. This is when the minutes from this month's FOMC meeting are released at 2:00 PM ET. They will give details and discussions on the Fed’s decision to make its third quarter-point rate cut this year. The minutes may also help form predictions about what the Fed may do in the future based on their concerns regarding inflation and employment strength. It is one of those reports that may cause volatility in the markets or be a non-factor, depending on what they show. However, the last FOMC meeting was followed by revised Fed predictions and dot plot, so the possibility of seeing something unexpected is somewhat minimal. The mid-afternoon release means if there is a reaction, it won’t come until later in the day.

Overall, we should see some movement in the bond market as the year comes to a close. That likely will not translate into an equal amount of movement in mortgage pricing though. No day stands out as a clear choice for most important for rates while the calmest day may be Friday unless we get some unexpected headlines. While we are expecting to see rates remain within a tight range this week, it is still possible to get a surprise move without notice. Accordingly, it would be prudent to keep an eye on the markets if still floating an interest rate and closing in the near future.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.