The 10-year Treasury yield fell to 4.03%, down 77 basis points since January.
Mortgage rates dropped to 6.35% last week, already easing borrowing costs for buyers.
Markets priced in a 96% chance of a Fed rate cut during its September meeting.
Lower rates are viewed as crucial for reopening the housing market to buyers and sellers.
Sustained affordability improvements could reshape housing activity through late 2025.