Educational information only — not financial advice. Talk with a licensed lender about your specific situation.
Mortgage rates have now climbed for four consecutive weeks. Depending on which survey you follow, the average 30-year fixed rate is sitting just under or just above 7 percent — the highest level in roughly nineteen months. Jumbo rates have moved up alongside them.
Yesterday we covered what the Federal Reserve’s recent move means at a high level. Today we want to cover something more immediately useful: the mechanics of a rate lock. When rates are moving weekly, lock decisions stop being paperwork and start being money.
What a lock actually is
A rate lock is your lender’s commitment to hold a specific rate and point structure for a set number of days — commonly 30, 45 or 60 — provided your loan closes in that window and your file does not materially change. It is protection against rates rising. It is not a guarantee your rate cannot change at all, which is why the details matter.
Four questions worth asking your lender this week
1. How long is the lock, and does it cover my actual closing date? A 30-day lock on a contract with a 45-day close is a problem you can see coming. Match the lock term to the timeline, with a buffer.
2. What does an extension cost? Extensions are usually available and usually priced in fractions of a point. Knowing the cost up front removes a stressful surprise if an appraisal or survey runs long.
3. Is a float-down option available, and what triggers it? Some lenders offer a one-time float-down if rates drop meaningfully before closing. These have conditions — a minimum improvement threshold, a fee, a deadline. Ask what it takes to qualify, in writing.
4. What would cause the lock to be voided? Changes to loan amount, property, occupancy type or credit profile can all reset pricing. Avoid opening new credit accounts or changing jobs mid-process.
The bigger strategic point
In a market with more inventory than we have seen in years, buyers often have more leverage on price and terms than they do on rates. Nationally, seller concessions have been carrying a lot of weight in negotiations. A structured concession toward closing costs or a rate buydown can, in some scenarios, do more for a monthly payment than waiting for a rate move that may not come. Whether it works for you depends on your loan program, your timeline and how long you plan to stay — which is a real conversation with a real lender, not a rule of thumb.
Locally, Houston-area buyers still have an unusually broad selection of homes to choose from. That combination — more choices, higher borrowing costs — rewards preparation and punishes hesitation in equal measure.
The Audra O’Neal Team works alongside trusted local lenders every day and can help you line up your financing conversation before you are competing for a specific house. Call or text us and let us get you positioned properly.
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The Audra O’Neal Team | ONTX Realty Partners
Call or Text: 281-972-8200
Email: ONealTeamRocks@gmail.com
Web: http://www.ONealTeamRocks.com
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