The housing market is experiencing a surge of optimism as mortgage rates have hit their lowest level since last October. This has led to a rise in homebuilder stocks, with the ITB ETF breaking past resistance. The average 30-year fixed mortgage rate has dropped to 6.58% as of Aug. 14, a decrease of 5 basis points from the previous week, according to data from Freddie Mac. This marks the lowest rate in 10 months and is a welcome relief after a year of stagnant rates that hindered demand. Freddie Mac's chief economist, Sam Khater, noted that the decline in rates has led to an improvement in purchase application activity. Market expectations for interest rates have shifted, with traders increasingly anticipating a Federal Reserve rate cut as early as September. Fed futures currently indicate a 91% probability of a rate cut.