Mortgage Rates and Market Impact - The average rate on a 30-year US mortgage fell to 6.26%, the lowest since early October, down from 6.35% last week and 6.09% a year ago [6] - Rates on 15-year fixed mortgages eased to 5.41% from 5.5% last week, compared to 5.15% a year ago [6] - Mortgage rates have declined since late July due to expectations of Federal Reserve rate cuts, with a quarter-point cut delivered recently and projections for two more reductions this year [6] Refinancing Surge - The decline in mortgage rates has led to a nearly 30% increase in mortgage applications last week compared to the prior week, with refinancing loans making up nearly 60% of the total [5] - Homeowners who took loans when rates were above 6% are particularly driving the surge in refinancing [5] - Demand for adjustable-rate mortgages (ARMs) rose sharply, accounting for about 13% of all applications, the highest share since 2008 [5] Market Outlook - The easing of mortgage rates is expected to support a modest pickup in home sales in the coming months, although the broader impact may be limited as 81% of homeowners hold mortgages below 6%, reducing incentives to sell or move [6]