The average rate on a 30-year U.S. mortgage dropped to 6.26% from 6.35% last week, according to Freddie Mac. Borrowing costs on 15-year fixed-rate mortgages also fell to 5.41% from 5.5%. Mortgage rates are influenced by factors like the Federal Reserve’s interest rate decisions and bond market expectations.

Mortgage rates generally follow the trajectory of the 10-year Treasury yield, which was at 4.12% in midday trading Thursday. Rates have been decreasing since late July in anticipation of the Fed’s rate cut. The central bank cut rates by a quarter-point on Wednesday and projected two more cuts this year.

The average 30-year mortgage rate is now at its lowest level since October. The decline in rates has been a positive trend for the housing market, which has been struggling since last year as sales of previously owned homes hit a 30-year low. Rates hovering above 6.5% have contributed to sluggish home sales.

Read more at Yahoo Finance: Average rate on a 30-year mortgage falls again, dips to lowest level since early October