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Best Day of the Week to Lock-in a Mortgage Rate 

 March 23, 2021

By Scott Teesdale  

minutes read time

Locking in a lower mortgage rate can save you both money and time when it comes to paying off your home. Believe it or not, there is a best day of the week to lock-in your mortgage rate when buying a home. Applying for a mortgage rate at the right time could lead you to lock in a better rate and save you money in a crucial time of buying your home. Whether you want to invest in a mortgage as an entrepreneur or to live in, there are both the best day and worst days of the week to lock in a mortgage rate. 

Why Monday is the best day to lock-in a mortgage rate

The best day of the week to lock in a mortgage rate is Monday. This is because the history of mortgage rates shows it’s the least volatile day of the week when it comes to the mortgage market. Potential homebuyers will want to avoid volatility.

But what does all of this mean and why does it matter when it comes to your home’s mortgage rate? 

Monday is your best day of the week to get the mortgage rate you desire because history shows that it’s the calmest day for mortgages, according to The Mortgage Reports. The reasoning behind this is that it’s because there isn’t as much news reported about the markets at the beginning of the week compared to the end of the week. This leads to market rates being calmer and more predictable at the very beginning of the week compared to the middle or end of the week where they can be volatile and unpredictable. Aiming to lock-in your mortgage rate on a Monday is your best bet to get a calm rate compared to other days of the week.

What does it mean?

In case you’re not up-to-date on your mortgage and real estate terminology, a mortgage rate lock is a commitment to your lender, telling them that you agree to pay the rate offered to you at that time. It’s a contract that you enter and is guaranteed for typically as long as it takes to close your home which is around 30 days but can be extended longer. This is why it’s so important to lock-in your mortgage rate on the best day possible. It will help you secure a lower rate on your mortgage, thus saving you money in both the short-term and long run. 

What’s the worst day of the week to lock-in a rate?

While Monday is the best day of the week to lock-in a mortgage rate, there is also the worst day. In this case, there are multiple worst days that you’ll want to try to avoid when locking in your mortgage rate. Avoiding a bad day will be one of the main factors when choosing a mortgage

Wednesdays are one of the worst days of the week to lock-in your mortgage rate for a few different reasons. It’s one of the most volatile and unpredictable days of the week when it comes to the market. The main reason for this is that the Federal Reserve holds its Federal Open Market Committee (FOMC) meetings on Wednesdays and this when a lot of news about the markets is reported on and released to the public. This influx of information causes the Wednesday market to become volatile and is the opposite of the reason why Monday is so calm. There are so much information and news being shared that it drastically affects the mortgage rate market and is the worst day of the week to lock-in a mortgage rate, that’s how rates for mortgages work

The second worst day of the week to lock-in a mortgage rate is Friday. For similar reasons as of Wednesday, so much information has been shared throughout the week that it makes Friday one of the most volatile days of the week to secure a mortgage rate. Another reason why this is not an optimal day of the week to lock-in a mortgage rate is because the Bureau of Labor Statistics (BLS) typically releases its Non-Farm Payrolls report on the first Friday of every month. This report makes Fridays so volatile because it includes a ton of information about mortgage-backed securities. Some individuals who like to gamble might see this as an opportunity because it can make the mortgage rate market volatile in both the right and wrong direction and you could possibly secure a better rate on a Friday. However, you could also secure a significantly worse rate as well.

Now you know the best and worst day to lock-in your mortgage rate

Unless you’re the gambling type and want to try your luck with locking in your mortgage rate, avoid Wednesdays and Fridays and aim for Mondays. You’ll have a better chance of locking in a better mortgage rate this way.

If you’re still unsure about all of this information, a mortgage guide for first time home buyers might be what you need. 

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I use data and technology to help Millennials navigate the ins-and-outs of buying or selling a home in today's market. From appraisals to mortgages to zoning, I cover it all with the goal to teach others. Connect with me on social via the icons above.

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