Do Mortgage Rates Change Daily?

August 10, 2009 No Comments »

mortgage rates

It’s that time again folks, time for fun mortgage Q&A!

The latest question: “Do mortgage rates change daily?”

Mortgage rates are hot news right now, what with them hovering around all-time lows.

And it seems everyone is interested to see if they can save a little money on their current mortgage payment via a refinance or get into a new home with a super low rate.

[The refinance rule of thumb.]

But while mortgage rates have been historically low, they’ve also been extremely volatile as a result of the ongoing mortgage crisis and all the subsequent government intervention. Not to mention the economy at large.

So when shopping for a mortgage, it’s now more important than ever to keep a close eye on rates, because they can and will change daily (Learn more about how mortgage rates are determined).

Each morning, Monday through Friday, banks and their loan officers get a fresh “ratesheet” that contains the pricing for that day. And brokers get pricing updates for all the banks they work with.

Mortgage rates do not change during the weekend, though pricing can change between Friday and Monday. So pricing you receive on Friday could certainly differ from the pricing you receive on Monday morning.

This is similar to the stock market or any other financial market for that matter.

Get Rate Updates Daily

If you want to know where mortgage rates are for a given day, call your bank or broker and ask; and don’t be afraid to call every day to keep track of mortgage rates, as it’s their job to keep you informed.

Sure, they might be annoyed that you’re constantly asking for updates, but it’s their duty to provide you with this information.

And it’s extremely important because it will determine how much you pay each month and over the life of the loan. So they should be more than understanding.

Don’t just assume that the last rate quote they gave you, or the initial one to get you in the door still stands. It could be completely different a week or even a day later.

Mortgage Rates Can Change During the Day

So we know mortgage rates have the ability to change on a daily basis, but sometimes mortgage rates may even change more than once during the same day if certain economic reports are released.

In other words, your interest rate is never really secure until it is locked and you receive written confirmation from the lender.

For example, a mortgage rate quote provided in the morning may no longer be valid that same afternoon. If you drag your feet and tell the loan officer you’ll get back to them, even if just hours later, the rate may be ancient history.

Remember, if you want a guaranteed interest rate on your mortgage, you need to lock it in.

[Locking vs. floating your mortgage rate]

By locking, I mean speaking with your mortgage broker or loan officer, agreeing on certain terms, and getting lender confirmation in writing!

I can’t stress this enough; often times borrowers will be “promised” a certain interest rate or simply be told that interest rates are “X” and not to worry.

But when it comes time to close the loan, for whatever reason, interest rates may have gone up, and the promised rate is no longer available, often putting the borrower in a tough spot.

Typically, borrowers just bite the bullet and reluctantly agree to the new interest rate because they’re so far along in the loan process.

That’s why it is imperative to lock in your mortgage rate when you’re comfortable with it, and be sure to get it in writing and keep that document in a safe place!

Read more: What mortgage rate can I expect?

Compare Today’s Mortgage Rates

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