Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their loans to a lower rate, also eased.

The average rate on a 30-year mortgage in the U.S. edged closer to 6 percent this week to its lowest level since early February 2023. The rate fell to 6.09 percent from 6.20 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.19 percent.

After years of high mortgage rates that left countless would-be homeowners on the sidelines, the tide is finally turning in favor of those looking to enter the housing market. This week, the Federal Reserve slashed its benchmark rate by 50 basis points,

Mortgage rates fell to the lowest level in two years a day after the Federal Reserve cut its benchmark interest rate. The 30-year fixed-rate mortgage averaged 6.09% as of Sept. 19, according to data released by Freddie Mac on Thursday.

Mortgage rates declined to their lowest level since February 2023 after the Federal Reserve instituted a significant interest rate cut. In the past week, the standard 30-year, fixed-rate mortgage averaged 6.