Do Mortgage Rates Change Daily?

Mortgage rates are a hot topic these days. With rates hitting record lows, its no wonder current and prospective homeowners are keeping a close watch on them. Whether buying their first home or refinancing an existing loan, many people are becoming more interested in mortgage rates and how they fluctuate.

It's important to realize that even if rates are historically low, they won't necessarily stay that way. The housing crisis and government intervention that followed have affected the mortgage rate system, making interest rates quite volitile. The rate on a 30 year fixed rate mortgage may be around 4.00% today, but in a few months (or weeks) it could be closer to 5%. In fact, mortgage rates can and do change on a daily basis. Although it is unlikely a mortgage rate will see a drastic change from one day to the next, it isn't impossible. That's why you should lock in a low rate with your lender as soon as you feel comfortable with the pricing. Understand that your mortgage company is typically committing that loan and amount of money to their lending partners (who is buying the loan). If rates fall and you skip out on your lender, they may put in a position for having "fall-out" which can affect their pricing with their investors. In other words, find a good deal and stick with it and expect the same courtesy from your lender or broker.

If you're curious about the most up-to-date mortgage rates in your area, call your mortgage professional. Don't hesitate to call often and ask questions about that day's rates. Remember, the rate your lender quotes you over the phone won't necessarily be available the next day or even later that same day. Sometimes rates can change more than once in a 24-hour period.

 Locking in a mortgage rate means you have spoken with your broker or loan officer, agreed to certain terms and have confirmed this information in writing. Until you get this information in writing, the rate you've been quoted is subject to change without warning.