The average rate on a 30-year U.S. mortgage fell for the fourth week in a row to its lowest level in more than a year.

Lower mortgage rates boost home buyers’ purchasing power. They also benefit homeowners eager to refinance their current home loan to a more attractive rate.

The average long-term mortgage rate dropped to 6.17% from 6.19% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.72%.

The last time the average rate was lower was Oct. 3, 2024, when it was 6.12%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week. The average rate dropped to 5.41% from 5.44% last week. A year ago, it was 5.99%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The average rate on a 30-year mortgage has remained above 6% since September 2022, the year mortgage rates began climbing from historic lows. The housing market has been in a slump ever since. Sales of previously occupied homes sank last year to their lowest level in nearly 30 years.