MCLEAN, Va. (AP) — The average rate on a 30-year mortgage fell last week to its lowest level in nearly 10 months, giving prospective homebuyers a sorely needed boost in purchasing power that could help inject life into a stagnant housing market.

The long-term rate fell to 6.58 percent from 6.63 percent the previous week, mortgage buyer Freddie Mac said. A year ago, the rate averaged 6.49 percent.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.71 percent from 5.75 percent a week ago. A year ago, it was 5.66 percent, Freddie Mac said.

Elevated mortgage rates have helped keep the U.S. housing market in a sales slump since early 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Home sales sank last year to their lowest level in nearly 30 years.

It was the fourth week in a row that rates came down. The latest average rate on a 30-year mortgage is now at its lowest level since Oct. 24, when it averaged 6.54 percent.

The recent drop in mortgage rates has spurred many homeowners to refinance, however.

Mortgage applications jumped 10.9 percent from the previous week as rates eased, boosted by homeowners seeking to refinance, according to the Mortgage Bankers Association.

Home loan refinance applications made up nearly 47 percent of all mortgage applications. Refi loan applications jumped 23 percent from a week earlier, the strongest showing since April.