Is a long-term lock worth the cost right now if building a house that will finish in late March?


Knowing that there is a very good chance rates will rise in the next few months, is it worth the cost of locking at 180 days?


Rates are not certain, in the future. However, overall market conditions and economic indicators could give us some idea of what to expect. The consensus is we still have a period of the lowest rates compared to historical rates during every time period except perhaps the bottoming of rates we got several months ago to close to 3.0% for a 30 yr. fixed. Maybe we can somehow stay in the 4s for a 30 yr. fixed. On the other hand if you are somewhat happy with a rate offered for 6 months perhaps you can still float down if rates are better in 6 months. That is what I propose with my clients, if they are not comfortable with waiting to see where rates are at that time!

Answered 5 months ago


Don’t know if you’ve locked already, or where you’re at in the loan process, but rates are now the lowest since November per Matthew Graham’s great rate analysis last Friday in Mortgage News Daily. If you haven’t locked, might be time to look towards it. If you have, may want to look at some other options if your rate is above the current best execution rate, which is nearing 4.25% for ideal borrowers.

Answered 3 months ago
Ted Rood
1097 6

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