If you locked in your interest rate in the last two weeks or were told to lock in by your mortgage professional, you could have made a mistake.When rates go up so quickly based on economic data that moves the market quickly, the same data can turn the rates back down soon enough.Long term interest rates are mortgage rates.These rates are based on unemployment, inflation and the price of oil among many other factors.However, the things that moved the market last week were chatter and talk.I a, not saying there was no economic data that was real; there was simply a huge market reaction to all of it.

I would not lock in on a big upswing unless I had to close my loan within a week to ten days.I did not lock in one client over the past two weeks no matter how nervous I got.In fact, I even instructed one client to postpone a closing for a few weeks and they did.Of course they were able to; you might not be in such a flexible position.If you go to a bank (direct lender) and you lock in, you are stuck with that rate even if they go down.If you go to a mortgage broker/banker and you lock in, ask the loan officer if you are approved with another lender that you can lock in with-at a later date.I obtain a mortgage approval for a buyer with at least two lenders.If this happens and we knee jerk into a lock in we have a back up.Make sure you are always working with a professional and are covered if the rates pop up.Ask questions and do your own research.

– Dale Siegel