When inflation hit a decades-high in June 2022, interest rates soon followed. Following multiple hikes from the Federal Reserve, the federal funds rate hit its highest point in decades last July – and it has remained untouched since that point. Against this backdrop, rates on borrowing products surged as well, with mortgage rates rising to their highest point since 2000. Homebuyers looking for their dream home and homeowners looking to refinance, then, were stuck with few options.
Just carefully weigh the closing costs against what you stand to save with a lower rate and plan to remain in the home long enough to recuperate those costs; otherwise, it won't be worth making the switch. Start shopping for mortgage refinance rates here now.Homeowners who can get a rate a full percentage point lowerMost experts would say a mortgage refinance is worth it if you can get a new rate that's a full percentage point lower than your current one.