Is it too late to refinance your mortgage? That depends on your motivation.
Rising rates have put a dent in mortgage applications and refinance activity. The Mortgage Bankers Association reported earlier this week that mortgage applications during the last week of May decreased 7.6 percent from a week earlier. Refinances dropped from 51 percent to 49 percent of mortgage activity—the lowest level since May 2014.
For the week ended June 2, rates for a 30-year, fixed-rate mortgage averaged 4.06 percent, up from 4.02 percent the previous week, according to mortgage information site HSH.com. "The 4 percent threshold is a key threshold," said Greg McBride, chief financial analyst at Bankrate.com. "That may have taken the money off the table." Plenty of homeowners already have rates in the neighborhood of 4.25 to 4.5 percent, he said, so refinancing savings aren't compelling.
In February, when rates were closer to 3.75 percent, there were roughly 7.1 million homeowners in 30-year, fixed-rate mortgages that could have benefited from refinancing, according to an April report from Black Knight Financial Services, a mortgage analytics firm. Rates rising just half a percentage point would mean 3 million of those borrowers would no longer benefit, it estimated.