As we head into the first week of December, mortgage rates are starting out just a bit higher than they were before the Thanksgiving holiday. The move was small, but it was driven by something important: stronger-than-expected economic data last week.
If you pressed pause on your home search for the holiday, this is a good moment to catch up on what happened and what it means for your next steps.
What Happened Last Week?
Two key reports came out before the holiday:
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Jobless claims stayed low.
Fewer people filed for unemployment than economists expected, which signals that the job market is still holding up. -
Durable-goods orders beat expectations.
Durable goods are big-ticket items like machinery, equipment, and appliances—things businesses buy when they feel reasonably confident about the future. Stronger durable-goods numbers suggest that business activity remains solid.
Together, those reports painted a picture of an economy that is still reasonably strong, not weakening sharply.
Why Stronger Data Can Nudge Rates Higher
Mortgage rates are closely tied to the bond market. When economic data looks strong:
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Investors often expect the Federal Reserve to be more cautious about future rate cuts.
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Bonds can become less attractive compared to riskier assets like stocks.
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As bond prices fall, yields (and therefore mortgage rates) tend to drift higher.
That is exactly what we saw heading into this week:
The bond market weakened a bit after the stronger reports, and the average 30-year fixed rate moved slightly higher as a result.
The key word here is “slightly.” This was not a major spike—just a small adjustment based on last week’s numbers.
Where Mortgage Rates Stand Now
Even with the modest bump:
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The average 30-year fixed is still near the lowest levels we’ve seen in recent weeks.
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Affordability is still better than it was earlier in the year when rates were higher.
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The overall trend is more “stable with small ups and downs” than “surging higher.”
So while last week’s data was strong enough to move rates a bit, it did not erase the improvements buyers have seen recently.
What This Means if You’re Thinking About Buying or Refinancing
If you hit pause for the holiday, here’s what to keep in mind:
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Your buying power likely hasn’t changed much.
A slight move in rates usually doesn’t make or break a purchase on its own, but it can nudge your monthly payment up or down. -
This is a good time to refresh your numbers.
An updated quote can show you where your payment lands today and whether it still fits your budget. -
The market is still data-driven.
Upcoming reports on jobs, inflation, and consumer spending will continue to influence where rates go next. For now, we’re in a relatively stable zone with mild day-to-day movement.
Bottom Line
Stronger jobless-claims and durable-goods data from last week gave mortgage rates a slight push higher to start December, but the average 30-year fixed is still hovering near recent lows.
If you paused your home search or refinance plans for Thanksgiving, this week is a great time to check in, update your numbers, and see whether the current market still works for your goals.
Have questions or want to talk through your options?
Just fill out the contact form on this page or give me a call—I’m here to help.
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Source: Mortgage News Daily