Median mortgage payments declined by 0.1 percent over the four weeks ending Aug. 18 to $2,587 at a 6.49 percent interest rate, according to data published Thursday by the real estate company Redfin. 

There has been a modest decline in mortgage rates over the past year from a more than 20-year high of 7.8 percent last October to 6.49 percent earlier this month, according to national mortgage backer Freddie Mac. 

“The late-summer decline in mortgage rates continued last week, with the 30-year fixed rate dropping to 6.5 percent — the lowest since May 2023,” Mortgage Bankers Association CEO Bob Broeksmit said in a statement. 

Despite the decline in rates and monthly payments, mortgage applications fell last week as housing prices remain elevated. 

“Applications to refinance and buy a home both fell last week, which may be an indication that some prospective borrowers are hoping that rates decrease even more before they decide to apply,” Broeksmit said. 

The Hill’s Tobias Burns has more here.