Lower mortgage rates at the end of 2025 prompted a refinance rush among current homeowners, helping boost prepayment rates to their highest level in three years, according to a new report from ICE Mortgage Technology. “December’s numbers show that lower interest rates drove refinance activity and prepayments to near multi-year highs,” said Andy Walden, head of mortgage and housing market research at ICE. The average contract interest rate for 30-year fixed mortgages in December fell 2 basis points to 6.3%, the lowest level of 2025. For homeowners wondering about whether it makes sense to refinance, experts caution not to get fixated on a magic interest rate. Here’s a closer look at the top (and bottom) states where borrowers are falling behind on their mortgage payments.