When Is the Best Time to Lock in an Interest Rate in Tulsa?

During the radio show this week, a home buyer asked a great question. “I’m buying a second home and expect to close in December. Should I lock in an interest rate soon, or wait?”


Interest rates are constantly going up and down. If you lock in now, rates may go down afterwards. On the other hand, if wait too long, you have to accept what you get. When is the best time to lock in an interest rate? Why is it important?

The interest rate affects how much you’re paying for the money which you’re borrowing. Therefore, a lower rate means a lower payment. However, there are a lot of things happening in our world which affect market cycles, creating uncertainty.

It’s important you work with a lending professional who can analyze the bond market and explain what’s happening. For example, if we look at this year, bonds have been up and down considerably, with a low point in mid-September. During this time, the country was experiencing hurricanes and threats from North Korea, causing investors to wonder where the safest place to invest money was. They decided to invest in bonds, driving the cost of bonds down. As a result, at that moment, you could’ve gotten the lowest interest rate available this year. Looking at it now, 30 days later, we have returned to the average rate of 2017. If interest rates look high right now, it’s because they were recently low.

One year ago, you would’ve paid 1 point lower, but rates are trending up. The best advice is to talk with your lender and review all options. Consider what’s most important to you. The difference in interest rates between now and December is anticipated to be an eighth of a percent. Is it more important to you to save in interest, or to feel secure as a property owner?

For more information on interest rate, or to complete a loan application online, contact Dan Newbury at TTCU Federal credit Union or visit ttcu.com

For real estate questions, contact The Baskin Real Estate Specialists of eXp Realty at 918-732-9732 or darrylbaskin.com


Photo Reference: 401kcalculator.org