Mortgage rates in the United States fall below the 7% level for the first time since March.

Mortgage rates in the United States fell below 7% last week for the first time since March, prompting consecutive increases in home purchase financing applications.

The interest rate for 30-year fixed-rate mortgages dropped by 8 basis points to 6.94% in the week ending June 14, according to data from the Mortgage Bankers Association (MBA) released this Wednesday. Five-year adjustable-rate mortgages fell by 18 basis points to 6.27%, matching their lowest level since February.

The mortgage application index for home purchases rose by 1.6%, reaching its highest level since March, following an 8.6% increase the previous week.

Mortgage rates are moving in tandem with Treasury yields, which also significantly decreased last week after government figures showed a broad cooling of inflationary pressures. This led traders to increase bets that the Federal Reserve is in a better position to cut interest rates, possibly as soon as September.

Earlier this year, the housing market showed signs of emerging from a multi-year downturn until mortgage rates began to rise. The reduction in financing costs for home purchases may partly mitigate the impact of high listing prices and provide further momentum to housing demand.

Meanwhile, NASDAQ 100 futures were trading slightly higher, while Dow Jones futures were experiencing a slight decline, and S&P 500 futures showed no significant changes.