The average rate on a 30-year U.S. mortgage declined to just above its lowest level this year, dropping to 6.27% from 6.3% last week and 6.44% a year ago. Borrowing costs on 15-year fixed-rate mortgages also eased to 5.52% from 5.53% last week, according to Freddie Mac.

Mortgage rates are influenced by factors such as the Federal Reserve’s interest rate decisions and bond market expectations. The 10-year Treasury yield, a guide for home loan pricing, was at 4.02% on Thursday, down from 4.14% the previous week. Rates started declining in July ahead of the Fed’s rate cut last month.

Fed officials predict two more rate cuts this year and one in 2026, but may adjust based on inflation and trade tensions. However, further Fed rate cuts don’t guarantee mortgage rate drops. Rates have stayed above 6% since 2022, impacting the housing market which has been in a slump.

Sales of previously occupied U.S. homes hit a nearly 30-year low last year. This year, sales are below 2024 levels. Market conditions and mortgage rates play a significant role in the real estate industry, impacting both buyers and sellers.

Read more at Yahoo Finance: Average long-term US mortgage rate slips to 6.27%, nearing a low for 2025