After months of elevated mortgage rates in 2024, a recent decline is now making monthly home payments more affordable.

As of last week, 30-year mortgage rates declined to a 15-month low of 6.35%, according to the latest Freddie Mac data. That's down from a peak rate of 7.79% in October 2023.

Mortgage rates are linked to declining 10-year Treasury yields, which tend to decrease when there's either a downturn or uncertainty in the economy.

The decline follows slowing inflation, a cooling labor market and the anticipated end of interest rate hikes by the Federal Reserve, which is widely expected to announce its first rate cut since March 2020 in September.