 TITLE: When Should I Lock In My Mortgage Rate? CONTENT: When Is the Best Time to Lock In a Mortgage Rate?\n-------------------------------------------------\nWhile mortgage rates change constantly and are unpredictable, certain circumstances could make locking a good choice:\n*   **When rates are on the rise:** While mortgage rates fluctuate hourly or daily, they tend to move in an upward or downward trend over weeks or months. Start by researching recent mortgage rates. If they've been increasing, it could be smart to lock in now in case they rise further. Declining rates, on the other hand, could mean that locking in now causes you to miss out on an even lower rate later. Also, research to see if any events or market trends could be impacting rates now or have the potential to in the future; for example, rates were low during the height of the pandemic but are on the rise again at the time of writing.\n*   **When the Fed is meeting:** The Federal Reserve periodically meets and sometimes adjusts the federal funds rate, which is the rate at which financial institutions borrow money and therefore influences mortgage interest rates. Market interest rates have a tendency to increase after the Fed meets if they discuss rate increases, so it could help to research when they plan to meet and consider locking in a rate if your closing date occurs after a Fed meeting.\n*   **When your budget is tight:** By locking in a rate, you'll get a clearer sense of your monthly mortgage payment, which can give you a greater sense of financial certainty. If you don't lock in and rates skyrocket between your mortgage application and loan closing, your payments could be higher than expected and tougher on your budget.\n*   **When closing is set:** If your closing date seems set in stone and rates are competitive, locking in could be the right call. If you're not sure when you'll close, or it's possible there will be delays, locking may not be worth it since you'll likely have to pay a fee to extend it (or let it expire and pay current rates). END