Based on the volume of loans coming in, homeowners and prospective homeowners recognize that now is the right time to get a mortgage. From “Mortgage News Daily,” here are some bullet points on locking versus floating:
- Rates and costs continue to operate near all time best levels.
- Current levels have experienced increasing resistance in improving much from here. There are technical reasons for that as well as fundamental reasons.
- Lenders tend to get busier when rates are in this “high 3’s” level and can throttle their inbound volume by raising rates or costs.
- While we don’t necessarily think rates are destined to go higher, given the above facts, there seems to be more risk than reward regarding floating, but that will always be the case when rates are operating near historic lows.
As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario. There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you’re following along on a day-to-day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate.