The number of refinance applications surged this week, thanks to a mortgage rate drop of 9 basis points, according to the Mortgage Bankers Association. Refinance requests jumped 7% during the week ended July 2, 2025 from the previous week and were up 40% compared to a year ago. During the same time, mortgage interest rates fell to their lowest level since April, with the average on a 30-year fixed-rate home loan dropping to 6.79% from 6.88% the week before. The decline in rates did not entice more home buyers, however, with applications for home purchase mortgages increasing just 0.1%.