What is a mortgage rate float down and is it worth it?

Mortgage float downs let you secure today's rate while keeping the door open to benefit from future decreases. Krisanapong Detraphiphat/Getty Images

Homebuyers are finally seeing some relief in the final months of 2025 . Recent back-to-back Federal Reserve rate cuts have pushed 30-year fixed mortgage interest rates down to the low-6% range, which is a welcome shift from the 7%-plus levels that dominated much of the year.

Still, timing a mortgage rate lock remains tricky. Locking in current rates protects you from potential increases, but what if rates drop further before you close? This is where mortgage rate float down options enter the conversation, as they offer a way to secure today's mortgage rates while keeping the door open to benefit from future decreases.

So what