When should I lock my loan?
The Fed took it's stance yesterday during their meeting to leave the Fed Funds Rate unchanged at 5.25%. In today's volatile market, my sources say to lock sooner than later. Waiting for a better rate to pass along your way is not a wise approach to take at this time. At the conclusion of the Federal Reserve Board releasing their brief policy statement, bond prices decreased. When bond prices decrease, interest rates increase which is unfavorable for the public purchasing loans.
In addition to the Fed Funds Meeting, China has threatened selling off $1.3 Tillion in US Bonds. This is in response to trade sanctions the US has threatened against China. China has an enormous stake in US Bonds and we all know what happens when large amounts of a bond or stock is dumped in the market: It pushes the value way down. In turn, this would force interest rates higher since we previously explained that they have adverse reactions to each other.
The idea is to contact your trusted advisor today and ask them if they locked your loan. If they haven't, you need to find a trusted professional that is listening and reacting to important indicators like I've explained above.