Recent declines in mortgage rates have sparked a significant surge in refinancing activity among homeowners, with the 30-year fixed mortgage rate falling to 6.47%, the lowest since May 2023. The Mortgage Bankers Association reported a 34.5% increase in refinancing applications, marking the highest level in over two years, while overall mortgage applications rose nearly 17%. This trend is expected to continue, with experts predicting further declines in rates by the end of the year. Meanwhile, specific housing markets are becoming more attractive to buyers, particularly in the South and Midwest, with Columbus, Ohio, topping the list due to its affordability. The easing of the lock-in effect and rising inventory are expected to provide more options and downward pressure on home prices, benefiting first-time buyers. Analysts anticipate that the Federal Reserve may cut rates in September, further influencing mortgage borrowing costs.