US mortgage rates slipped to their lowest level in two weeks this week, giving homebuyers and refinancers a modest bit of relief. The average 30-year fixed mortgage rate fell to 6.78%, according to the report, marking the weakest level since early June.

The decline comes as financial markets increasingly expect the Federal Reserve could cut interest rates later this summer. Traders have been adjusting their outlook in response to softer inflation signals and signs that policymakers may be nearing a shift in stance.

Even with the latest drop, borrowing costs remain elevated compared with the ultra-low rates seen in previous years. That means affordability is still a challenge for many households, especially first-time buyers facing high home prices and limited inventory.

Analysts say mortgage rates could continue to move if investors see clearer evidence that the central bank is preparing to ease policy. For now, the dip offers only limited relief, but it may help improve sentiment in a housing market that has remained under pressure.