The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 6.79% from 6.88% Applications to refinance a home loan rose 7% last week compared with the previous week.

Americans saw a chance to save a few dollars on their monthly mortgage payments and took it, pushing refinance applications up 40% versus a year ago.

Mortgage rates have dropped for five weeks in a row. But will they continue to do so this July? Here's what to consider.