Following the Federal Reserve’s 0.5% cut to the benchmark interest rate Wednesday, mortgage costs continue to decline.

The rate for a 30-year fixed mortgage fell to 6.09%, Freddie Mac reported Thursday. That’s 0.11% lower than last week and 1.1% lower than a year ago.

The rate for a 15-year fix mortgage fell to 5.15% — 0.12% lower than last week and 1.39% lower than a year ago.

Mortgage rates are now at their lowest level since February 2023.

“While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market,” Freddie Mac said in a statement on its website. “Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but rates will likely fall further, sparking more housing activity.”

Since peaking last October, at 7.79% for a 30-year fixed and 7.03% for a 15-year fixed, rates have been steadily declining. 

The Federal Reserve is expected to lower its benchmark interest rate another 0.5% before the end of the year and an additional 1% in 2025, lowering mortgage rates even further.