Mortgage refinancing activity surged in September but dropped 21% as rates climbed to 6.46%. Despite the decline, refinance applications are still 16% higher than a year ago. Mortgage rates fell before the Fed cut interest rates, but rose immediately after, making refinancing less attractive.

The reversal in mortgage rates led to a significant drop in refinance applications, according to MBA’s Joel Kan. Mortgage rates began falling before the Fed’s rate cut, putting 3.1 million homeowners “in the money” for refinancing. Rates have since risen, following 10-year Treasury yields.

For more information on finding the lowest mortgage rates and personal finance news, visit Yahoo Finance. Claire Boston covers housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter for the latest updates.

Read more at Yahoo Finance: Fall’s mini-refinancing wave is already over