Weekly Mortgage Rates Tumble; Should You Refinance?

This article was first published on NerdWallet.com.

Mortgage rates plunged in the week ending Aug. 8 to their lowest since February 2023. The rapid decrease is likely to set off a wave of refinancing.

The 30-year fixed-rate mortgage plummeted 31 basis points, averaging 6.29%. That's the lowest since the week ending Feb. 2, 2023.

Crucially, the 30-year mortgage has fallen more than a percentage point since a stretch that lasted from late August to the middle of November last year. It topped out at 7.95% the week before Halloween.

If your current mortgage rate is significantly higher than today's rates, you could decrease your monthly payment by refinancing. But would it be wise to refinance now, or should you wait in the hope that interest rates will fall even more? Here's how to approach the decision.

Compare rate you have with rate you could get

First, review your loan account to see your current interest rate, and compare it to current mortgage rates. If you got a mortgage last year from late August through November, there's a good chance that current rates are about a percentage point lower.

Reducing the mortgage rate by a percentage point can save lots of money. Take the example of a $300,000 loan. With a 7.5% interest...