The average rate on a 30-year mortgage in the U.S. edged closer to 6% this week to its lowest level since early February 2023.

The rate fell to 6.09% from 6.20% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.19%.

The last time the average rate was this low was on February 2, 2023.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week. The average rate fell to 5.15% from 5.27% last week. A year ago, it averaged 6.54%, Freddie Mac said.

Mortgage rates are influenced by several factors, including how the bond market reacts to the Fed’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The Federal Reserve cut its main interest rate for the first time in more than four years Wednesday. Fed officials also signaled they expect further cuts this year and in 2025 and 2026. The rate cuts should, over time, lead to lower borrowing costs on mortgages.