The refinance share of mortgage activity spiked to 59.8% of all applications, up sharply from 48.8% the prior week. The surge coincided with a 15-basis-point drop in the average 30-year fixed mortgage rate to around 6.35%, the largest weekly decline in a year, according to Freddie Mac. "Borrowers who do opt for an ARM are seeing rates about 75 basis points lower than for 30-year fixed rate loans." The 10-year U.S. Treasury yield has eased to about 4.02% from a peak near 4.8% earlier this year, driving mortgage rates lower. Bank of America expects mortgage rates to decline further to around 6.25% by year-end if the Fed resumes its easing cycle.