When you ask what today's rate is, you're asking a lender to read from a document that didn't exist twelve hours ago. Every business morning, mortgage brokers and direct lenders generate a rate sheet by importing secondary-market pricing, layering in their margins, and applying a grid of adjustments for loan size, credit tier, property type, occupancy, and lock period. That sheet is live until market conditions or the lender's risk appetite changes—sometimes within the same afternoon.
How secondary-market pricing drives the base rate
Most closed loans are sold to aggregators, correspondent investors, or into mortgage-backed securities within days of funding. The investor sets a par price: the percentage of loan balance they will pay for a loan with a given note rate. If an investor offers 100.500 par pricing on a thirty-year fixed note at 6.750 percent, the lender receives $100,500 for every $100,000 financed at that rate. A higher note rate generates a premium above par; a lower rate costs the lender discount points. These figures are illustrative; rates and products are subject to change and this is not a commitment to lend.
Lenders pull this pricing each morning, add their operating margin and broker compensation, and publish the result as the day's base rate sheet. Market moves—Treasury yields, Fed announcements, employment data—cause investors to re-price intraday, and lenders republish sheets when the change crosses their threshold.
Loan-level price adjustments
The base rate applies to a benchmark profile: excellent credit, single-family primary residence, standard loan-to-value ratio, and a forty-five-day lock. Every other characteristic triggers an adjustment. A credit score below 740 adds cost. A two-unit property adds cost. Cash-out refinance adds cost. A condo in a high-rise adds cost. A fifteen-day lock saves cost because the lender carries interest-rate risk for a shorter window. These adjustments are expressed in points—one point equals one percent of the loan amount—and they compound. A borrower with a 680 score, ninety-percent LTV, investment property, and thirty-day lock may see the rate climb a full percentage point above the advertised base, or pay several points in fees to buy it down.
Why the morning rate may vanish by afternoon
Rate sheets are not guaranteed until you lock. If the ten-year Treasury rallies fifty basis points by lunch, lenders re-price higher to protect margin on their pipeline. If you were quoted 6.500 percent at nine in the morning and call back at two, the same loan may now price at 6.750 percent or require an extra half-point in fees. Conversely, a market sell-off can improve pricing mid-day. Lenders also pull sheets entirely when volume overwhelms their capacity or when secondary markets become illiquid.
The Alliance take
Rate-sheet pricing is a daily snapshot, not a static menu. Lock when the combination of rate, cost, and your timeline align—waiting for perfection often means watching the opportunity disappear. Review the loan estimate carefully, confirm every adjustment, and understand that the sheet you see today will be history tomorrow. If you're ready to move forward, start an application and work with your loan officer to time the lock.