Mortgage Rate Increase Leads Homeowners to Hurry to Close Refinancing Deals.

Byline: Matt Glynn

Aug. 4--An abrupt rise in mortgage rates has cooled activity in refinancing, and has raised the pressure to close deals before applicants' lower-rate commitments expire.

Homeowners in recent months have seized on low mortgage rates and fueled a boom in refinancing. The average rate on a conventional 30-year mortgage has stayed below 6 percent.

But in the past week, mortgage rates shot above 6 percent, the highest level since last December.

Consumers have responded swiftly. The number of refinancing applications is down 50 percent from just a month ago, and is at its lowest level this year, according to the Mortgage …