Average U.S. 30-year fixed mortgage rates have slipped to 6.75%, their lowest level in more than a year, according to the latest market data. The decline marks the weakest reading since May 2025 and reflects growing expectations that borrowing costs may ease later this year.

The move follows the Federal Reserve’s latest projections, which pointed to the possibility of interest rate cuts in the months ahead. Investors have been watching the central bank closely for signals that could reshape the housing market, especially after a long stretch of elevated financing costs.

Lower mortgage rates can improve affordability for some buyers and support refinancing activity, though housing costs remain high in many parts of the country. Even with the recent drop, rates are still well above the ultra-low levels seen during the pandemic-era housing boom.

Analysts say the next few months will be important for both homebuyers and lenders, as any policy shift from the Fed could further influence mortgage pricing and demand across the U.S. housing market.