Average rate on a 30-year mortgage drops to 6.77%, sliding to lowest level since March

The average rate on a 30-year mortgage dropped this week to a four-month low, a welcome decline in borrowing costs for prospective homebuyers grappling with the challenge of record-high home prices and a dearth of properties on the market. The rate fell to 6.77% from 6.89% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.78%. The average rate has mostly hovered around 7% this year — more than double what it was just three years ago. Rates have eased recently as signs of cooling inflation have heightened expectations that the Federal Reserve will cut its benchmark interest rate as early as September.