December 2, 2025

🏦 Today’s Rate Movement: A Gentle Nudge Lower

After Monday’s brisk push toward higher rates, Tuesday felt like the market hit the snooze button. Most lenders offered rates just slightly better than yesterday’s—nothing dramatic, but a welcome shift nonetheless.

Bonds opened the morning modestly weaker, but Mortgage-Backed Securities (MBS) rallied back to “unchanged” fairly quickly. Treasury yields took their sweet time catching up, not fully settling until the afternoon.

What’s interesting? There were no obvious catalysts, no major headlines, and no clear correlations to other markets. The steady improvement suggests traders were simply repositioning… and waiting for the real action to arrive.

⚡ Why Tomorrow Could Get Wild

Starting Wednesday morning, potential rate volatility rises sharply. Each day this week brings market-moving data, but Wednesday is the heavyweight:

• ADP Employment Report – often a hint of what Friday’s big jobs report may show

• ISM Services Index – especially influential because services make up the bulk of U.S. economic activity

In quieter markets, these reports already matter. But right now? With government shutdown data delays temporarily elevating the relevance of private economic releases, both ADP and ISM hold even more sway than usual.

Translation: rates could shift quickly, in either direction. This is a “keep your phone handy” kind of week.

🔍 What This Means for Buyers & Agents

• Floating? Stay alert—tomorrow’s data could help or hurt.

• Locked already? Great—today’s minor moves don’t change anything.

• Working with clients who are rate-sensitive? This is a prime moment to re-engage them as opportunities may open or close quickly.

If you’ve got questions about locks, strategy, or timing, I’ve got you. 🐼