The average rate on a 30-year U.S. mortgage dipped slightly this week, now sitting at 6.21% compared to 6.22% last week and 6.72% a year ago, according to Freddie Mac. 15-year fixed-rate mortgages also decreased to 5.47% from 5.54% last week and 5.92% a year ago.

Mortgage rates are influenced by various factors, including the Federal Reserve’s interest rate policy decisions and bond market investors’ economic and inflation expectations. Rates typically align with the 10-year Treasury yield, which remained steady at 4.12% this week.

The 30-year mortgage rate has remained relatively stable since hitting a low of 6.17% on October 30th. Rates started declining in July ahead of Fed rate cuts, with a recent report on inflation potentially prompting further rate cuts next year.

While the Fed’s rate cuts can signal lower inflation and drive investors to buy U.S. government bonds, they don’t always lead to lower mortgage rates. In 2024, despite rate cuts, mortgage rates rose above 7% as the 10-year Treasury yield climbed towards 5%.

Read more at Yahoo Finance: Average US long-term mortgage rate edges lower, remaining near its low for the year