The average rate on a 30-year U.S. mortgage eased for the third straight week, a welcome trend for prospective homebuyers at a time when elevated borrowing costs remain a drag on the housing market, which has been in a sales slump since 2022.

The long-term rate fell to 6.81% from 6.84% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.87%.

Borrowing costs on 15-year fixed-rate mortgages, popular for refinancing home loans, also fell. The average rate eased to 5.96% from 5.97% last week. A year ago, it was 6.13%, according to Freddie Mac.

With the latest decline, the average rate is now back to where it was in mid-May, reflecting a recent pullback in bond yields. — Associated Press