When you can’t refinance a mortgage to capitalize on lower rates [Video]

The Federal Reserve slashed interest rates by a half percentage point, or 50 basis points, on Wednesday, its first rate cut since March 2020.

Even before the Fed rate reduction, some homeowners had already taken advantage of recent declines in mortgage rates. Refinance activity increased to 46.7% of total applications during the week ended Sept. 6, up from 46.4% the week before, according to the Mortgage Bankers Association.

Others have been waiting for the Fed to take action. To that point, 18% of consumers said they planned to refinance a loan once rates go down, according to a report by NerdWallet. The financial services site polled more than 2,000 U.S. adults in July. 

But it might be too soon to benefit from refinancing a mortgage.

“You want to wait for rates to be at a …