It’s one of the most common and costly mistakes we see borrowers make: holding off on applying for a mortgage while chasing that elusive “lowest rate.” It seems smart on the surface—why rush when you can keep shopping around? But in today’s volatile rate environment, this strategy can backfire hard.

Here’s the truth no one tells you: by the time you decide to move forward, the deal you thought you had could be long gone. Rates can rise overnight, and quotes don’t mean a thing unless they’re locked in. Waiting could potentially cost you thousands, so let’s ensure this doesn’t happen to you. 

 

Why Waiting Can Cost You Thousands

Mortgage rates move quickly, sometimes daily, and once they’re up, those previously quoted lower rates vanish. Take a $500,000 mortgage, for example. In the past few weeks, we saw the lowest 5 year fixed for one rate category* jump from 3.64% to 4.04%. This results in the cost of the mortgage increasing by just over $10,000 over five years! 

We’ve had borrowers come back weeks after being quoted a rate, only to find that same product has become significantly more expensive. The worst part? They had the opportunity to lock it in but didn’t.

The good news? Locking in doesn’t lock you out. At PMT, if rates drop after you’ve locked in, we can still lower your rate… even after you’ve signed the commitment. If another lender were to come out with a lower rate, then we can still switch you to that lender. Think of it as insurance, not a commitment that prevents from taking advantage of potential lower rate offers.  

 

Rate Quotes Can Be Misleading 

In a falling rate market, lenders often leapfrog each other with lower offers. But what you might not realize is this: everyone’s rates dropped… not just the broker who “beat” the others. 

Meanwhile, your original broker’s rate may now be even lower than what you think you just scored.

Now flip that logic to a rising rate market, and suddenly you’re not saving anymore… you’re stuck with fewer options and higher costs.

 

The Truth About Locking in a Mortgage Rate

Locking in a mortgage rate isn’t just clicking a button. It requires a full application, credit check, and documentation. This isn’t a preapproval.  It’s a real, underwritten approval that secures your rate. Yes, it takes a bit of effort… but that effort could save you thousands.

And you’re never obligated to proceed with that offer. If we find a better deal with another lender, we can always move you to the lower rate option. 

 

Win the Rate Game

At PMT Mortgage, we don’t just chase rates… we look at maximizing your savings through strategic planning. While other brokers may rely on the same few lenders year after year, we shift based on who’s offering the best rates now. We also reinvest part of our commission to buy down rates for clients… a sacrifice we gladly make to save you even more.

We monitor rates up until closing and drop yours if the market allows. It’s not about the lowest rate today—it’s about the lowest rate at time of closing. 

And this is just one of the many things that make PMT Mortgage different from other brokerages. 

 

The Trap of Choosing Based on Rate Alone

Many borrowers obsess over rates, making them their sole reason for choosing a mortgage. But the true cost of a mortgage is not found in the rate. It’s found in the terms.  Hidden penalties, rigid restrictions, and lack of flexibility can turn a low rate into a high-cost mistake. The real savings come from aligning the product to your goals—not just the percentage on the page.

 

What’s Happening in the Mortgage Rate Market Now?

Mortgage rates dropped significantly after peaking in October 2023, but they’ve recently reversed course. For example, the lowest insured 5-year fixed went from 3.64% to 3.89% within weeks. In some situations*, the lowest rate increased by 0.40%! We warned clients and many took our advice and locked in. But others chose to wait, despite our warnings… and are now paying the price. 

In the past couple of days, bond yields have fallen off their recent peak. But it’s far too soon to tell if this is a trend reversal. Anything can happen. 

Market forces from inflation data to political instability are adding volatility. A single tweet from US President Donald Trump or a geopolitical event can cause overnight changes in bond yields… which lead to changes in fixed mortgage rates. The only way to protect yourself is to lock in.

 

Final Thoughts

In Beat the Bank, I talk about the “mortgage rate obsession”—a dangerous mindset that can lead to costly mistakes. You don’t have to fall into that trap. 

In today’s unpredictable market, trying to perfectly time your mortgage rate is like trying to time the stock market—it sounds smart, but often leads to costly missteps. The real key isn’t just securing a low rate; it’s knowing when and how to lock it in, and making sure you’re protected if the market turns.

This blog isn’t about fear… it’s about awareness. Rates can and do change quickly, and too often, borrowers who hesitate end up paying more. Locking in early provides a safety net, and the right mortgage partner ensures you stay flexible if better options arise.

At PMT Mortgage, we believe smart mortgage planning goes beyond rate-chasing. Our focus is on timing, strategy, and long-term savings—because the best mortgage isn’t always the one with the lowest rate today. It’s the one that saves you the most over time, with no unpleasant surprises.

If you’re serious about getting a great mortgage and want experienced guidance along the way, we’re here when you’re ready.

 

*Purchases for under $1 million with a down payment of 35% or greater.