When shopping for interest rates, you must understand that they move with the market. Nothing is locked in until your lender has your purchase contract.
What’s happening with interest rates right now?
According to Jared Bahr of Arvest Bank, they’re day-to-day.
“Interest rates move with the stock market,” he says, “so it’s important to know that when you’re shopping for rates, you stay updated on them.”
Once you meet with a lender to get pre-approved, in this competitive market, it could take a couple of weeks to find the home you need. That’s why it’s important to understand that rates aren’t locked in until your lender has your purchase contract.
You and your lender will ideally have clear communication about what rates are doing once you’re pre-approved. Once you have a contract and you’re ready to lock in that rate, you’ll then discuss what that lock is referring to, the term, and what the interest rate is the day you make that lock.
I want to give a special thanks to Jared for joining me today. If you have any more questions about interest rates or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d be glad to help you.