The holiday season tends to make the real estate market move slowly. But have you ever wondered how the mortgage rates during holidays behave? Are the results going up, down, or do they remain unchanged? How do real estate deals get affected in the holiday season?
So, let me make it easy so that you make the best choices when buying, selling, or investing in property.
Mortgage Rates During Holidays: What Happens?
We should first see how mortgage rates behave around holiday periods. A lot of people think that rates do not change, but that’s not always the truth. Actually, there may be some uncertainty in mortgage rates during November and December.
1. Fewer Market Participants
Firstly, during the holidays, many people take time off. Lenders, investors, and even homebuyers step away from their desks. Because of that, there’s less market activity, which can lead to small fluctuations in mortgage rates. Fewer transactions mean lower demand, and that can sometimes make rates drop just a bit.
2. Federal Decisions Still Matter
Secondly, even though it’s the holiday season, the Federal Reserve still meets in December. If they raise or lower interest rates, that can impact mortgage rates directly. For example, if they announce a hike, expect mortgage rates to rise. On the flip side, if they keep rates steady or drop them, mortgage rates may hold or fall slightly.
3. Year-End Investor Behavior
Thirdly, the holidays mark the end of the financial year. Many investors adjust their portfolios, and this can cause short-term shifts in the bond market. Since mortgage rates are tied to bonds, this can make rates wiggle up or down unexpectedly.
Do Mortgage Rates During Holidays Go Up or Down in December?
Now you might ask: Do mortgage rates typically go up or down in December? The answer is: it depends.
Historically, rates may dip slightly in December due to lower demand and less competition. But keep in mind, if inflation is high or the Federal makes big moves, rates might still go up.
Also, lenders may offer holiday promotions or rate specials to attract clients during a slow season. That means, if you’re shopping for a mortgage, you might find a good deal.
How Mortgage Rates During Holidays Affect Real Estate Deals
Besides mortgage rates, the holiday season also affects how real estate deals happen. So, here’s how:
1. Slower Market Activity
First of all, most people are busy with family gatherings, gift shopping, or traveling. So, fewer homes are listed, and fewer buyers are actively searching. This slower pace can work in your favor if you’re a serious buyer.
2. Motivated Sellers
Moreover, homeowners who list their property during the holidays often do so because they need to sell. This means they’re more likely to accept offers, even if they’re slightly below asking price. If you’re looking to buy, this could be your chance to negotiate.
3. Less Competition
Additionally, with fewer buyers in the market, you won’t face as much bidding war pressure. That gives you more room to breathe and make thoughtful decisions.
Should You Buy Property If Mortgage Rates During Holidays Are Fluctuating?
Absolutely—if the timing is right for you. Buying during the holiday season can come with some benefits:
- Lower prices due to motivated sellers
- Fewer competing buyers
- Potential rate specials from lenders
But also keep in mind:
- Fewer listings to choose from
- Potential delays in closing due to holiday office hours
If you’re using a direct private lender like Loan Locker, you may not experience as many delays. Loan Locker offers fast, reliable funding, even during the holidays, because they control their own capital and can work on your timeline.
Tips for Buying or Refinancing During the Holidays
Here are some smart tips if you’re thinking about making a move during the holiday season:
1. Get Pre-Approved Early
Lenders may work with a skeleton crew during the holidays. That means you should get pre-approved ahead of time so you’re ready to act when you find the right deal.
2. Work With a Direct Lender
Furthermore, using a direct private lender like Loan Locker can make the process smoother. Unlike big banks, they have more flexibility and can move faster, even when others are out of office.
3. Watch the Federal
In addition, stay updated on the Federal Reserve’s December meeting. Their decision can directly impact what you’ll pay in mortgage interest.
4. Lock Your Rate
Lastly, if you see a rate you like, lock it in quickly. Rates can change without much warning during low-volume weeks.
What About Real Estate Investors?
If you’re an investor, the holidays can be a goldmine. Why? Because you can:
- Scoop up discounted properties
- Make deals with less competition
- Take advantage of end-of-year tax planning
Also, working with a direct lender like Loan Locker helps you move fast and close quickly, which is key in holiday deals.
Final Thoughts: Mortgage Rates During Holidays
The mortgage rates during holidays don’t follow a strict pattern—but they do tend to be affected by lower activity and investor behavior. Sometimes, real estate deals take a bit longer to complete, which creates chances for wiser buyers.
Getting or investing in your next property should never be stopped by the rush of holiday seasons. If you deal with a lender who can move swiftly, then this is one of the best windows for getting started.
When you come to us for a real estate loan, you can make the most of the season because we fund quickly and without restrictions. Even when holidays happen, we remain busy since timing is essential in the real estate business.
So, do you want extra advice on handling real estate and mortgages even after the season? Visit Loan Locker to talk to one of our experts.
Also, How to Navigate Financing Condo Inventory in a Tight Market.