Smart strategy saves thousands mortgage rate lock vs float

The Case for Floating Your Rate

On the other hand, floating your rate can be advantageous if you anticipate that interest rates will decrease. By not locking in immediately, you may benefit from a lower rate, reducing your overall mortgage costs. This strategy requires careful monitoring of market trends and economic indicators, as rates can be influenced by various factors, including Federal Reserve policies and inflation rates. For example, if rates are expected to drop due to an economic downturn, floating might be a wise choice.