MW Is now a good time to lock in your mortgage rate? Here's what to know.

Andrew Keshner

Mortgage rates rose to 6.37% Thursday as the bumpy spring home-buying season continues

Time to lock in?

In the face of whipsawing mortgage rates, spring home buyers want something certain.

That could be why mortgage-rate locks are on the rise for buyers this year.

On Thursday, the average 30-year fixed rate mortgage climbed to 6.37% from 6.30% a week ago, according to Freddie Mac (FMCC).

Rates are still clearly lower than they were a year ago, when the 30-year fixed rate mortgage was 6.76%. But it's been a ride to this point.

Mortgage rates dipped under 6% in late February for the first time in years. Then came the war with Iran and bond-market worries about soaring oil prices and an inflation flare-up.

Mortgage rates - which tend to follow the yield on the 10-year Treasury note BX:TMUBMUSD10Y - climbed for weeks. By early April, the average 30-year rate on a home loan hit 6.46%. Then rates slid, buoyed by cease-fire news and hopes of cheaper oil. Yet, for two weeks now, rates have increased.

Where do rates go in May? That's never an easy question to answer, especially when it's not clear what's next for the U.S.-Iran negotiations, as well as oil and gas prices.

Some buyers may not want to find out, which explains the rise of the mortgage-rate lock.

These are written commitments from a lender to a borrower that keep a loan's rate at a specific level for a certain period of time, no matter what else is happening in the market, according to Kimber White, president of the National Association of Mortgage Brokers.

"Once locked, your rate does not change, as long as your loan details remain the same and you close within the lock period," he said. The typical lock period is 30 to 90 days.

Generally speaking, rate locks may be a flat fee or a percentage of the loan, such as 0.25%, according to Rocket Mortgage.

In March, the volume of mortgage rate locks rose 13% month over month and 26% year over year, according to Optimal Blue, a mortgage technology and data company.

"Our April data shows that rate-lock activity pulled back after a strong first quarter, but purchase locks remain ahead of last year despite rate volatility," said Optimal Blue CEO Joe Tyrrell. "That tells us buyers are still engaging when they find the right home and the right payment option."

Amid the mortgage-rate volatility, there are signs that potential home buyers want to close the deal. Pending home sales have reached the highest point since September 2022, Redfin said Thursday. Earlier this week, the Census Bureau and Department of Housing and Urban Development said new home sales climbed in March.

"Recent data points to slightly better conditions for buyers with a boost in new-home sales, median new-home prices being down to their lowest level since July 2021, and higher inventory than in recent years. Together, these trends could modestly ease affordability pressures through the spring home buying season," said Sam Khater, Freddie Mac's chief economist.

Some extra pointers on rate locks may help buyers decide if the move is right for them.

There's a general rule, according to White. "Lock your rate as soon as you have an accepted purchase contract and your closing is within 30 days. Be aware that markets can move sharply on a single economic report, a jobs number, an inflation reading, a geopolitical event."

There are exceptions to that rule.

If a closing is more than 30 days away, that could be a reason to wait, White said. Heads up to condominium buyers: The homeowner association questionnaires, studies and reviews can prolong the timeline to closing, he noted. "Ask your broker upfront what lock period is appropriate for the type of property you are purchasing," White said.

If a 0.25% increase in the mortgage rate is not going to meaningfully impact a loan approval or a borrower's monthly budget, that could also be a case to wait, he said.

What happens if mortgage rates decline after a lock-in?

Some lenders have a "float-down" option that protects both sides, according to White. "It lets you lock your rate now to protect against increases, while preserving the right to drop to a lower rate if the market improves before you close."

It's usually a drop of at least 0.25% before the locked rate floats lower, he said.

There's fine print: Not every lender offers float-downs and some can charge extra by folding the offer into the rate, White said. Buyers have to request the option, and most lenders require it at least 10 to 15 days before the closing date, he noted.

Timing isn't everything

It's good to have clarity on borrowing costs, yet it's one part of a major financial decision. Fixating on the day-to-day costs of a mortgage may only do so much for a buyer.

"No one can reliably predict where rates will be in 30 or 60 days," said White. "The goal is not to catch the absolute lowest rate. The goal is to lock a rate that works for your budget and protect it from moving against you before closing."

"In an evolving market, trying to time the perfect moment is rarely the answer," Tyrrell said. "The more effective approach is to work with a lender who can clearly explain the trade-offs and help the borrower protect a payment they're comfortable with."

-Andrew Keshner

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May 07, 2026 12:02 ET (16:02 GMT)

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