NEW YORK, Aug 15 (Reuters) – The average interest rate on the popular 30-year mortgage in the United States was little changed this week, near its lowest level in more than a year, as signs of easing inflation pushed down yields on Treasury bonds used to calculate the cost of home loans.

The 30-year fixed-rate mortgage averaged 6.49 percent for the week ended Aug. 15, up slightly from the previous week’s 6.47 percent and the lowest level since May 2023, mortgage finance agency Freddie Mac said Thursday.

“In 2023, the 30-year fixed-rate mortgage will reach nearly 8 percent, slowing the housing market,” Sam Khater, chief economist at Freddie Mac, said in a statement.

“Currently, the 30-year fixed rate is around 6.5 percent and is expected to fall in the coming months as inflation continues to ease. Lower rates are good news for both prospective buyers and sellers.”

In the same period a year ago, the average was 7.09%.

Mortgage applications rose nearly 17 percent last week as mortgage rates continued to fall, prompting homeowners who bought with high-interest mortgages last year to quickly refinance their loans, according to data from the Mortgage Bankers Association on Wednesday.

“The significant increase is due to a 35 percent increase in refinancings and also includes a 3 percent increase in purchase applications. While refinancings remain strong, we expect the purchase market to continue to gain momentum as mortgage rates continue to fall,” MBA Managing Director Bob Broeksmit said in a statement.

Reporting by Makailah Gause; Editing by Dan Burns