The average rate on a 30-year U.S. mortgage dropped to 6.58%, the lowest in nearly 10 months, per Freddie Mac. Rates on 15-year fixed-rate mortgages also fell to 5.71%. The housing market has been stagnant due to high rates. Mortgage rates are influenced by various factors, including the 10-year Treasury yield.

July’s weaker job market data has led to speculation of a Fed rate cut next month, influencing mortgage rates. A potential rate cut could boost the economy but also fuel inflation. Economists project 30-year mortgage rates to remain above 6% this year. Mortgage applications surged last week, with refinance applications making up nearly half of all applications.

Read more at Yahoo Finance: Average rate on a 30-year mortgage drops to lowest level since October