Mortgage Rates Drop Fueling Refinancing Surge and Buyer Confidence

The recent and steady drop in mortgage rates is fueling a significant refinance surge and a much-needed boost in buyer confidence

According to the latest data from the Mortgage Bankers Association (MBA) for the week ending October 24, 2025, the market is buzzing.

The Purchase Index, which tracks applications for new home purchases, also rose by a healthy 5 percent for the week.

The simple answer is that money is getting cheaper to borrow. The average contract interest rate for a 30-year fixed-rate mortgage fell to 6.30 percent.

The data gives us even more insight into how people are reacting to these lower rates. It’s not just that they’re borrowing, but how they’re borrowing that tells a story.

The breakdown of government-backed loans also reveals some interesting, real-world impacts on the market.

This is your green light to re-engage with the market. A drop from 7% to 6.30% on a $400,000 loan can save you over $200 per month, significantly increasing your purchasing power

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.