Mortgage rates have dropped to a three-month low

‘We expect rates to continue to come down over the summer months,’ Freddie Mac says.

Mortgage rates fell to their lowest level since early April as the U.S. economy showed indications of a slowdown.

The 30-year fixed-rate mortgage averaged 6.86% as of June 27,  according to data released by Freddie Mac. In the beginning of July, the 30-year fixed rate was as low as 6.25%.

A year ago, the 30-year was averaging at 6.71%.

The average rate on the 15-year mortgage was 6.16%, up from 6.13% last week. The 15-year was at 6.06% a year ago.

Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.

The big picture: Lower mortgage rates help home buyers by lowering their interest costs on their monthly housing payments. And that could have a positive impact on home sales in the coming months.