The average rate on a 30-year U.S. mortgage has fallen to its lowest level in four months, welcome news for prospective homebuyers who have been held back by stubbornly high home financing costs.

The Bank of England has cut interest rates to 4%, taking the cost of borrowing to the lowest level for more than two years. The cut, from the previous rate of 4.25%, is the fifth since August last year, but was only narrowly backed by the Bank's policymakers who took two votes to reach a decision.

In what was likely welcome news for aspiring home buyers, the average rate on a 30-year mortgage held at a 10-month low, sitting at “levels from early October 2024,” according to data released Tuesday from Mortgage News Daily.