The period when a borrower has not locked mortgage pricing and the quote can still move.
Rate float means the borrower has not locked mortgage pricing yet, so the quoted rate, points, or credits can still move before a lock is accepted.
Rate float matters because mortgage pricing can improve or worsen while a borrower is shopping, waiting on a contract, or deciding when to lock. Floating can help if market pricing improves, but it can also make the final rate or cash-to-close less predictable.
It also matters because floating is different from having a float-down feature. A borrower who is floating is not protected. A borrower with a float-down feature may already be locked and only has a limited path to improvement under the lender’s rules.
Borrowers encounter rate float before a Rate Lock is in place. This can happen during quote shopping, after preapproval but before contract, or while the borrower is waiting to decide whether the timing is right to lock.
The term becomes practical when a lender says the quote is not locked yet or when a borrower asks whether the pricing shown today can change tomorrow.
| Pricing state | What it means | Main risk |
|---|---|---|
| Rate float | Pricing has not been locked | Market pricing can worsen before the borrower locks |
| Rate Lock | Pricing is protected for a defined period | The lock can expire before closing |
| Float Down | Some locked files can improve if market pricing moves favorably | The feature may be limited, unavailable, or conditional |
A borrower receives a quote on Monday but does not ask the lender to lock it. By Thursday, market pricing has moved higher. Because the borrower was floating rather than locked, the Monday quote may no longer be available.
Rate float differs from Rate Lock because floating means the borrower does not yet have pricing protection. A lock is the lender’s commitment to hold selected pricing for a defined period.
It also differs from Float Down. Floating is the unlocked state before a lock. Float-down is a feature that may improve pricing after a lock already exists.
It also differs from Lock Confirmation. Lock confirmation documents the accepted locked terms. A floating quote has not yet reached that locked-document stage.