The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) in the US fell by 9bps to 6.79% in the week ended June 27th, according to the Mortgage Bankers Association. It is the lowest level in about three months, and compares with 7.03% a year earlier. Borrowing costs declined in line with falling Treasury yields, as markets increasingly priced in at least two quarter-point cuts to the federal funds rate by the Fed this year. Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.78% from 6.88%. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 6.53% from 6.59%.