Here's why mortgage rates dropped to their lowest level in more than a year

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.