(Reuters) -The interest rate on the most popular U.S. home loan dropped last week to a 13-month low after a key reading of inflation came in lower than expected, cementing expectations for another Federal Reserve interest-rate cut.

The Mortgage Bankers Association said on Wednesday the contract rate on a 30-year, fixed-rate mortgage dropped 7 basis points to 6.30% in the week ended October 24, the lowest since late September 2024. With the latest drop, mortgage rates have fallen more than three-quarters of a percentage point since mid-January.

The MBA’s weekly applications index rose 7.1% last week to 338.7, led by a 9.3% increase in applications to refinance existing loans. Applications for loans to purchase a property rose 4.5%.

The report comes hours ahead of what is expected to be a

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