Average rate on a 30-year mortgage falls to 6.20%, its lowest level since February 2023

The average rate on a 30-year mortgage in the U.S. fell this week to its lowest level in 19 months, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the Federal Reserve next week. The rate fell to 6.20% from 6.35% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.18%. That’s good news for prospective homebuyers facing home prices near all-time highs. Mortgage rates are expected to keep trending lower overall this year. That’s due to signs of waning inflation and a cooling job market, which have raised expectations that the Fed will cut its benchmark interest rate next week for the first time in four years.