A lower-than-expected increase in inflation last month shows that the impact of the Trump administration's tariffs on the U.S. economy remains muted—but these numbers are far from convincing the Federal Reserve to cut interest rates,

For mortgage rates to continue falling, there needs to be signs of cooling inflation as well as additional Fed rate cuts.

If you expect mortgage rates to drop after locking in your rate, having a float-down option can help you take advantage of a better deal during the closing process.