While bonds aren’t closed for business this week, it wouldn’t much matter if they were–at least not for the average mortgage rate watcher. That’s not always the case on the week between Christmas and New Year’s Day. Things are a bit different this year due to the pandemic. We’re waiting for more tradeable info regarding omicron’s impact on the economy. Once that picture becomes clearer, the assumption is that rates will make a more convincing move toward the summertime lows or the more recent highs. At the very least, we’d expect a challenge of one of the outer boundaries of the consolidation pattern seen in the chart below.
Bonds close early on Friday, but there is no full-day closure as New Year’s Day falls on a Saturday this year.