Should you lock a mortgage rate before the next inflation report is released?
Summary
Mortgage interest rates have been rising recently due to inflation and global events, even though the Federal Reserve plans to keep rates steady through 2026. Borrowers thinking about buying a home or refinancing might want to lock in their mortgage rate before the next inflation report on May 12, since a higher inflation reading could push rates up again.Key Facts
- Mortgage interest rates increased from 6.12% to 6.37% between early April and early May.
- Inflation affects mortgage rates significantly; higher inflation usually leads to higher mortgage rates.
- Locking a mortgage rate means securing the current rate for a set time, protecting against future increases.
- Borrowers can budget better with a locked rate since their monthly payment will be clear.
- Some lenders allow borrowers to reduce (float down) their locked rate if rates drop before closing, usually for a fee.
- Refinancing later is possible if mortgage rates become lower in the future.
- The next inflation report will be released on May 12 by the Bureau of Labor Statistics.
- Rate locks can help borrowers avoid paying more if inflation causes rates to rise after the report.
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