The average rate on a 30-year fixed mortgage in the United States fell to 6.56% for the week ended Aug. 28, down from 6.58% a week earlier, Freddie Mac reported on Thursday. The reading is the lowest since Oct. 24, 2024 and marks a 10-month trough. A year ago, the rate stood at 6.35%. Rates on 15-year fixed mortgages were unchanged at 5.69%. The benchmark 30-year rate has slipped for six consecutive weeks and is now more than 40 basis points below the 2025 peak of just above 7% reached in mid-January. Mortgage costs have eased alongside a decline in the 10-year Treasury yield, which lenders use to price home loans, as investors anticipate a possible Federal Reserve rate cut in September. While Freddie Mac chief economist Sam Khater said lower borrowing costs are helping "purchase demand," home sales remain muted after last year’s downturn, underscoring persistent affordability constraints.