flickering colored lights in the night sky, indistinguishable shape, sort of swaying / hovering / rotating around.

I was about to go to bed when I noticed (through my bedroom skylight) a twinkling and color-changing light sort of hovering around, not moving too far in any direction; it was almost like it is swaying, more dramatically moving every now and then. It is flickering different colors, including blue, purple, red, greenish, and some in-betweens. I turned my light on and I could still see it. I wanted to make sure it wasn’t just a reflection of some holiday lights or something similar so I walked downstairs to my dining room and could still see it in the same spot at any given angle through our large bay window. I decided to wake my brother up and show him. He was obviously confused but still got up out of bed since it’s VERY much unlike me to say something along the lines of “hey I think I see a UFO or something” at 3 in the morning.
 He followed me to the dining room and was shocked when he saw it too. We decided to sit and watch it together and we’ve continued to do so for the past 20 minutes. He’s better than I am directionally and told me that it is in the southwest. It just keeps “hovering” around and what appears to be rotating in place. We were both super tired and honestly getting kind of freaked out so we just decided to go to bed (after watching for approx. 20 minutes)... and here I am typing this. I hope this information can be of some use. This is super bizarre to me as I’ve never really considered myself to be a person who cares about or believes in this sort of thing. The only thing convincing me right now that my brother and I aren’t both hallucinating is the fact that my dad once mentioned that he saw one while fishing in the middle of the night (like he does almost every night).
 I could still see it a few minutes ago (25ish minutes after noticing). I really need to go to bed so I went back upstairs and got in bed. I took my eye off it (could see through skylight) while typing this. I just now looked again and it is nowhere to be seen. Freaky.
 Just a little background: I am a 19 year old girl home from college for the holidays. To put it simply, I’m quite a “normal” young adult. My brother is 16 at the moment yet has always been extremely mature for his age. He is also quite “normal” and is the type who would typically dismiss this type of thing.