Mortgage rates have recently fallen, prompting a surge in refinancing applications, with the Mortgage Bankers Association’s index showing a 16% increase from the previous week and a 60% rise from last year. The Bank of England’s interest rate cut has also led to the return of sub-4% mortgage deals, providing relief to homeowners. The current average for a 30-year fixed mortgage is 6.52%, and 5.91% for a 15-year fixed mortgage, with expectations of further declines as inflation decreases. Despite the lower rates, home purchase applications have seen only a slight increase due to high housing prices and limited inventory. Some homeowners feel 'locked in' by their low mortgage rates, but optimism for future rate cuts is growing. Fixed-rate mortgages offer stability despite not benefiting from rate cuts, while adjustable-rate mortgages may offer lower initial rates but can vary over time.