Mortgage rates in the U.S. have continued to decline, reaching their lowest levels since April 2023, with the average rate for a 30-year fixed mortgage now around 6.35% to 6.44%. This drop is attributed to expectations that the Federal Reserve will cut its benchmark interest rate next month. Despite the lower rates, there has been only a modest increase in home-purchase applications and a slight decline in refinancing activity, as high home prices continue to pose affordability challenges for potential buyers. The trend of falling rates is seen as a potential spark for the housing market, but significant buyer activity remains elusive. The Federal Reserve’s ongoing monetary policies and economic factors like Treasury yields continue to influence these mortgage rates.