Note. You can't lock an interest rate uintil you have a property in mind. That rate is not transferable to another property. If you can't get a mortgage because rates sky rocket you will not lose your earnest money. And the conventional loan limit increase really hasn't helped Jumbo loans rates yet.
From the other side of the coin, I do appraisals all day every day and what I see it that location is key. If you find a property in the location you like and this is where you want to live, do it. Find the best company that will give you in writing the deal you are looking for. Set the rate and get them to agree in writing without any hidden costs to the agreement. This will probably mean you need to work with the big boys for the loan but there are good deals out there...
I have checked our rate matrix and I don't see a 1% shift on ANY loan program including Jumbos in the past two weeks. Yes there was a move but not that drastic. When I pre-qualify a borrower, I try prepare them for unexpected movements in the market, and explain what factors affect the rates. But honestly I have not seen a 1% move in any direction in quite awhile. Maybe the quotes were all smoke and mirrors, like most internet loan companies are, you might consider getting a another opinion for loan. Please let me know if I can be of assistance.
Best of Luck!
Once you've found your home and have opened escrow, then you will be in a position to start looking at the rates and get ready to lock in. As Corey said, a lock on a rate does not last forever and is non-transferable. There is usually a limit as to the number of days you'll have to close escrow and still keep your locked-in rate.
When you write an offer, your Realtor should be able to give you an estimate as to what your costs on the real estate side of the transaction should be. At the same time, your lender should be able to give you a "good faith estimate" that will let you know an estimate as to what your costs will be on the loan side.
Good luck with your home search! Give the Ransom-McKenzie Team a call if you're looking for someone to work with in Riverside!