Average rates on the benchmark 30-year US fixed mortgage fell to 6.56% for the week ended 28 August, according to Freddie Mac, edging down from 6.58% a week earlier and marking the lowest level since 24 October 2024. The decline extends a gradual easing that has pushed borrowing costs to a 10-month low, offering some relief to prospective homebuyers after last year’s sharp run-up in rates. The average 15-year fixed loan slipped to 5.69%. Despite the recent moderation, mortgage costs remain well above pre-pandemic levels and continue to outpace the Federal Reserve’s effective funds rate, which held at 4.33% on 27 August. Housing economists say the trajectory of mortgage rates will hinge on forthcoming inflation readings and the Fed’s guidance on the path of short-term interest rates.