M
ortgage refinancing applications surged 7% in the week ending June 27, according to the Mortgage Bankers Association. This increase brought refinance applications 40% higher than a year earlier, while purchase mortgage applications remained unchanged. The average rate for a 30-year fixed-rate mortgage fell to 6.79%, its lowest point since April.

    Despite the slight drop in rates, economists note that they remain stuck in a range of 6-7%. This is due to conflicting economic signals: signs of a cooling economy suggest lower rates, while persistent inflation pushes rates upward. Homeowners are seeking any opportunity to reduce their housing costs, and even small savings can make a significant difference.

    Many experts expect mortgage rates to remain relatively stable, with some predicting the 30-year fixed-rate mortgage will average around 6.7% in November. This new normal has led some homeowners who purchased in recent years to refinance, as they realize that rates below 6% may not be achievable.