Mortgage rates are a function of the financial markets and monetary policy. For the economy to remain robust, the financial markets have to cycle up and down like an engine. The cycles generally last 6 – 7 years from trough to peak. The low rate “deflationary cycle” began to turn in January – February and ended its capitulation in July in a dramatic fashion. The bias up is in full force and locking and closing fast is a critical component in today’s mortgage industry.