Should I Lock My Mortgage Rate Today?

When you’re buying a home, few decisions feel as nerve-wracking—or as permanent—as locking your mortgage rate. Lock too soon, and you might miss out on a drop. Wait too long, and you could get blindsided by a jump that adds hundreds of dollars to your monthly payment. It’s no wonder homebuyers ask us every week: Should I lock my rate today?

The truth is, there isn’t a one-size-fits-all answer. But there is a smart way to think about it—one that keeps you in control, no matter what the market does.

What Is a Mortgage Rate Lock?

A rate lock is a lender’s promise: they’ll honor the interest rate you’ve agreed to for a set period of time, usually 30 to 60 days. If rates spike before you close, you’re protected. If they fall, you might be stuck with the higher number—unless you’ve negotiated something better, like a float-down option (more on that later).

Think of it as an insurance policy against the market’s mood swings. In a state like Texas, where buyers often compete with fast-moving cash offers, having that certainty matters. Your rate lock not only protects your budget, it gives your lender confidence that you’ll close on time.

The Case for Locking Your Rate Now

There are two big reasons homebuyers choose to lock right away:

1. Rates could rise. Mortgage rates don’t move in isolation—they’re tied to inflation, bond markets, and Federal Reserve policy. If inflation runs hot or the Fed signals fewer rate cuts ahead, mortgage pricing can climb quickly. Locking early protects you from that risk.

2. You want peace of mind. Buying a house is stressful enough without constantly refreshing a rate tracker. Locking means you can focus on the inspection report, the appraisal, and planning your move instead of worrying about the 10-Year Treasury yield.

Here’s a real example: a Houston buyer went under contract in May with a 6.50% 30-year fixed. Within a week, bond yields jumped after a hot inflation print. By the time she closed, average rates were near 7%. Because she locked, she saved about $180 a month compared to where the market landed.

The Risks of Locking Too Soon

On the flip side, locking immediately isn’t always the best move.

1. Rates might fall. If the Fed announces cuts, if jobs data comes in weak, or if global markets trigger a flight to safety, rates can drop. If you’ve already locked without a float-down, you’re stuck unless you refinance later. Less of a risk if you have a float-down policy with your lender.

2. Lock periods expire. Most locks last 30–60 days. If your closing drags on—say a builder delays your new home in Austin—you could face extension fees. These fees can run into the hundreds, and they’re avoidable with better planning.

That’s why locking is a strategy, not just a checkbox. The key is timing and lender flexibility.

What If You Don’t Lock Right Away?

If you hold off, you need two things: vigilance and a responsive mortgage team.

• Stay in close contact with your lender. Ask about lock fees (there shouldn't be any), extension policies (), and float-down options. At LendFriend, we map out your entire lock strategy up front so you know what triggers a lock—and what protections you have if the market moves.

• Track the news. Rates don’t change randomly. They react to inflation reports, jobs data, and Federal Reserve meetings. For example, when Powell admitted in Jackson Hole that rate cuts were on the table, mortgage rates dropped within hours. Being plugged in matters.

• Use tools built for this. We offer free Friday Rate Alerts so buyers can monitor trends without getting lost in market noise. That way, if a dip comes, you’re ready to act.

What If Rates Fall After You Lock?

This is where the float-down comes in. A float-down allows you to grab a lower rate if the market improves after you’ve locked. Not all lenders offer it, and some only under certain conditions. But when used right, it’s the best of both worlds: protection against increases, with the flexibility to capture savings if rates drop.

If your lender doesn’t offer float-downs—or worse, doesn’t even mention them—you’re working with the wrong partner. At LendFriend, we offer float-down options directly—and ours are free. It’s a true differentiator that sets us apart. We regularly save clients at least $1,000 at closing or shave an eighth of a point off their rate with a float-down. And as brokers we can also compare across multiple lenders to make sure you don’t leave money on the table.

Improving Your Position Before You Lock

Even in a high-rate environment, you’re not powerless. Improving your borrower profile can secure you a better rate before you lock.

• Boost your credit score. Even a 20-point bump can translate into thousands of dollars saved over the life of your loan.

• Lower your debt-to-income ratio. Paying off a car loan or consolidating debt can give you access to better pricing.

• Consider points.  Buying down your rate with prepaid interest can make sense if you think that rates aren't going down. If you think rates are going to go down by more than 1% before the cost of the buy down can be recouped, you're likely throwing money away.

At LendFriend, we run these scenarios for every client. Sometimes it makes sense to wait two weeks, pay down a credit card, and then lock at a lower tier.

Should You Lock or Float? A Practical Framework

Here’s how we coach clients through the decision:

• If rates are trending up, lock. Protection beats regret.

• If rates are stable and you have time, float cautiously. But make sure you’re watching the right signals.

• If rates are volatile and your budget is tight, lock with a float-down. It costs a little more, but the protection is worth it.

Remember, your rate today isn’t your rate forever. If you buy in a 6.75% market and rates drop to 5.75% next year, refinancing is always an option. What you can’t redo is the home you missed because you hesitated.