Mortgage rates are the lowest in a year. Should you refinance?

Mortgage rates are below 6.2%, opening a window for recent homebuyers to refinance.

A window has just opened for recent homebuyers.

Mortgage rates have fallen to the lowest level in a year, below 6.2%, and could drift even lower if the Federal Reserve continues to trim its benchmark interest rates.

Residential mortgage rates are not set directly by the Fed, but they closely track the 10-year note yield, which has been falling lately for a variety of reasons, including the expectation of further rate cuts.

“It is very possible that you could see a 30-year mortgage rate with a five number in front of it in the next few months with the Fed’s additional planned rate cuts,” Doug Flynn, a New York-based certified financial planner with Flynn Zito Capital Management, told NBC News. “That could bode well for improved movement in the housing market.”

For most homeowners with a mortgage, their rates are still well below current market levels. The National Association of Realtors reported that more than 81% of homeowners had a rate below 6% in August.