Prior to locking in a mortgage rate, many borrowers will ask if there is a best time of the week or period of the year to complete this step in the home buying process. But the truth is, there’s really no way to perfectly determine which way mortgage rates are going to shift in the near future. In fact, one of the best times to rate lock is when something unexpected happens, such as Brexit. In many cases, these unforeseen changes will generate lower mortgage rates—but not always.
Apart from looking for sudden shifts in the market, many mortgage experts agree that there are certain days of the year when you should pay close attention to the economy to lock in a good rate. The first Friday of every month, for example, is one of the most important days to check the market. This is when the U.S. Bureau of Labor Statistics releases its job reports. It’s also important to note the dates of Federal Reserve meetings, which can sometimes lead to market movement and a potential change in interest rates. A few of these upcoming dates are listed below:
- December 13-14, 2016
- January 31 – Feb. 1, 2017
- March 14-15, 2017
- May 2-3, 2017
Although these specific dates may help borrowers choose when they should lock in their rates, recommending a specific day of any given week is a little more complicated. In fact, many experts suggest that there are benefits to rate locking at any point in the week.
Bill Dallas, Co-Founder and CEO of Cloudvirga, specifically suggests that “the end of the week is typically better than the first half of the week to rate lock because the market has had all week to digest information.” In contrast, many experts suggest locking in a rate at the beginning of the week because “mortgage rates are most stable on Mondays”.
No matter when you decide to lock in your mortgage rate, it’s important to make sure that you choose a rate you’ll be comfortable paying, even if rates go down later because as you can see the market is fairly unpredictable. For more information about locking in your mortgage rate, contact a mortgage specialist today.
