Mortgage rates have declined for the third consecutive week following signs of cooling inflation and lower interest rates from the Federal Reserve, according to Freddie Mac (OTC:FMCC).

The 30-year fixed mortgage rate averaged 6.87% as of Thursday, down from last week’s average of 6.95%. A year ago, the rate registered an average of 6.67%, Freddie Mac’s Primary Mortgage Survey showed.

The 15-year fixed mortgage rate came in at an average of 6.13%, down from a 6.03% average posted a week earlier. The average rate was 6.03% a year ago.

"Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut," Sam Khater, Freddie Mac's chief economist, said in a statement.

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"These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market. Aspiring homeowners should remember it's important to shop around for the best mortgage rate as they can vary widely between lenders."

A week ago, the average rate for the 15-year fixed mortgage was 6.95%, down from 6.99% a week earlier, according to the weekly survey. It stood at 6.69% a year earlier.

At that time, the average 30-year fixed mortgage rate was 6.95%, down from 6.99% average seven days ago. A year ago, it averaged 6.69%.

The 15-year rate averaged 6.17%, down from an average of 6.29% a week ago. It stood at an average of 6.1% seven days earlier.

Inflation stands at 3.4%, well below the Fed’s target of 2%, while the Fed rate is between 5.25% and 5.5%.

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