Mortgage rates this week dropped to their lowest level in more than a year, delivering some long-sought relief for homebuyers.

The average interest rate for a 30-year fixed mortgage stands at 6.47%, Freddie Mac said on Thursday. That figure marks a drop of more than a percentage point from a peak attained last year after the Federal Reserve hiked interest rates in an effort to fight inflation.

Mortgage rates fell to the lowest level in more than a year, raising hopes for relief in the battered U.S. housing market.

The average rate on the standard 30-year fixed mortgage fell around a quarter percentage point to 6.47%, according to a survey of lenders released Thursday by mortgage-finance giant Freddie Mac, a low not seen since May 2023 and the sharpest weekly decline in around nine months.

Mortgage rates dipped significantly this week, dropping to the lowest level in more than a year, according to Freddie Mac. Rates for 30-year, fixed-rate mortgages averaged 6.47%, down from 6.73% last week.

"Mortgage rates plunged this week to their lowest level in over a year following the likely overreaction to a less than favorable employment report and financial market turbulence for an economy that remains on solid footing," Freddie Mac Chief Economist Sam Khater said.