Mortgage finance giant Freddie Mac said the average rate on a 30-year fixed rate mortgage fell to 7.03% as of Thursday from 7.22% the week before. That is the lowest since mid-August.

Since hitting their highest levels in more than two decades in October near 8%, mortgage rates have tumbled as bond markets have rallied on expectations the Federal Reserve is done with its aggressive tightening campaign to rein in inflation.

(Reporting By Dan Burns; Editing by Chizu Nomiyama)