Look for trends in the direction of interest rates . Mortgage rates change a few basis points daily but it's the changes that take place over weeks or months that are more important.
Interest rates move with the economic cycle .
When the economy is strong, rates tend to rise as competition for funds increases. When the economy is weak, rates tend to drop as competition for funds diminishes. Mortgage loan points are paid when you close on a loan. Lenders will give you a lower interest rate if you're willing to pay more points. Evaluate the true borrowing cost .