The average rate on a 30-year mortgage eased this week to its lowest point in 15 months, offering welcome relief for homebuyers navigating a housing market that remains inaccessible for many Americans.

The mortgage rate declined to 6.46% from 6.49% last week, as reported by Freddie Mac, the mortgage buyer, on Thursday. A year earlier, the rate averaged 7.23%.

The average rate is currently at its lowest point since mid-May of last year, when it stood at 6.39%.

Borrowing costs on 15-year fixed-rate mortgages also decreased this week, offering positive news for homeowners seeking to refinance their home loan at a lower interest rate. The average rate dropped to 5.62% from 5.66% last week. A year ago, it averaged 6.55%, Freddie Mac reported.

Mortgage rates are expected to continue trending lower throughout the year, due to indications of decreasing inflation and a cooling job market which have led to expectations that the Federal Reserve will reduce its benchmark interest rate next month for the first time in four years.

“While mortgage rates have remained relatively stable in the past couple of weeks, recent economic data suggest rates will gradually decline by the end of the year,” stated Sam Khater, Freddie Mac’s chief economist.

After reaching a 23-year high of 7.79% in October, the average rate for a 30-year mortgage has largely stayed around 7% this year — more than double the rate it was just three years ago. But this month, the average rate has experienced its most significant drop in over a year, falling to around 6.5%.

The recent decline in mortgage rates has led to an increase in applications for home refinancing loans, while applications for home purchase loans have remained sluggish.

“Earlier this month, rates experienced a sharp decrease and are currently hovering just below 6.5%, a level that hasn't been sufficient to motivate potential homebuyers,” Khater stated. “We anticipate that rates will likely need to decline by another percentage point to stimulate buyer demand.”

Elevated mortgage interest rates, which can add hundreds of dollars a month in costs for borrowers, have kept many prospective homebuyers on the sidelines, prolonging the nation’s housing downturn into its third year.