A: The market is now watching economic news closely ... to try and guess what the Fed will do next. If the fed should cut rates again, taking the market by surprise, rates could drop quickly. Since the dollar has rebounded, and the economy shows strength, why lower rates? The problem with any financial instrument is guessing the future -- if I only had a crystal ball ....
If I were floating my rate, I would "lock it in" and "float it down" (in the event that the Fed should cut the rate.) A float-down allows you to lock in certain mortgage rates. Should the rate drop before your settlement date, you may re-lock at a lower rate.
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