Mortgage rates have now climbed for several weeks in a row, and recent reports put the 30-year fixed at its highest level in almost three years. Some daily rate trackers showed averages moving above 7.5% this week, while weekly surveys are reporting figures a bit lower but still well above 7%. Most of the recent coverage has focused on shoppers deciding whether to jump in. But there is a group feeling this move even more directly: buyers who are already under contract and have not yet locked their rate.
If that is you, the good news is that you still have choices. The key is understanding how your rate is protected, or not, between now and the closing table.
Step one: confirm whether you are locked. Many buyers assume their rate was locked when their loan application went in. That is not always the case. Call your loan officer today and ask three simple questions: Is my rate locked? What rate and points are locked? When does the lock expire? Get the answers in writing.
Step two: compare your lock date to your closing date. Closings can slip for ordinary reasons, like a repair negotiation, a title issue, an appraisal that takes longer than expected, or an insurance quote that needs to be revisited. If your lock expires before you close, you may face an extension fee or be re-priced at the current market rate. Knowing that gap now gives you time to plan instead of scrambling.
Step three: ask about extension costs and float-down options. Lenders handle extensions differently. Some charge a fee per day or per week; others build in a cushion. A few lenders offer a one-time float-down, which can let you capture a lower rate if the market improves before closing. These features are not free and are not offered everywhere, so ask what is available and what it would cost before you need it.
Step four: if you have not locked, run the numbers both ways. No one can predict where rates will go next. Waiting could help if rates ease, or it could cost you if they keep rising. Ask your lender to show you the monthly payment at today’s rate and at a rate a quarter or half point higher. Seeing the real dollar difference often makes the decision clearer.
Step five: keep the rest of the transaction moving. The fastest way to protect a locked rate is to avoid delays. Respond quickly to document requests, schedule inspections and insurance quotes promptly, and stay in close contact with your agent and lender.
Sellers can play a role too. In a market with more inventory and fewer active buyers, some sellers are open to contributing toward closing costs or a rate buydown. If your contract is still in its option period, that conversation may be worth having.
This is educational information, not financial advice. Your lender is the right source for the specific terms of your loan.
If you are buying or selling anywhere in the Houston area and want a calm, experienced team helping you keep your transaction on schedule, The Audra O’Neal Team is here to help. Reach out anytime.
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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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