When to Lock A Rate

Since interest rates fluctuate daily for mortgages clients want to have me tell them when the best time is to lock their rate in. The simple answer is usually "NOW". The complicated answer is "if the rate I can get you today goes up are you willing to pay the higher rate?" In a purchase, a closing date is set and will need to be met. This makes the choice to lock easier. If you lock, you need not worry about the rate going up and costing you more. For a refinance, it is sometimes difficult since there may not be a date by which you must close. You could wait for rates to fall if it appears to you that they will. One cautionary note: rates are like a bullet shot into the air; they go up quickly and fall more slowly.