Mortgage Lock

I am in a similar situation and I'm waiting to see more refined closing dates first as well as to see if we get rate relief in the slow months.

I can't see rates going up this quarter. If the overall housing market picks up, then yes, they might go up in Q4 or Q1 '08.

Have you asked your bank/broker what the numbers would be with a floatdown?

Noone can predict where rates will be in 1 year's time. I am a professional fixed income manager and trained economist, and even I won't pretend that I can predict it with any certainty. The question is whether you think the 0.75% fee is fair for protecting yourself from rate increases. Bear in mind that if yields were to come down, you could always ditch your rate-lock and go with a new lower rate - you'd just lose the rate-lock fee.