The average 30-year fixed mortgage rate dipped to 6.87%, Freddie Mac reported Thursday in its Primary Mortgage Market Survey.

The rate is down from last week’s average of 6.95% and from 6.99% two weeks ago. A year ago at this time, the 30-year fixed rate average was 6.67%. 

The 15-year rate averaged 6.13%, a slight dip from 6.17% last week. Last year’s 15-year average rate was 6.03%.

“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 news release. “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.”