The average long-term U.S. mortgage rate dropped below 7% to its lowest level since early August, another boost for prospective homebuyers who have largely been held back by sharply higher borrowing costs and heightened competition for relatively few homes for sale.

The average rate on a 30-year mortgage dropped to 6.95% from 7.03% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.31%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, edged up this week, lifting the average rate to 6.38% from 6.29% last week. A year ago, it averaged 5.54%, Freddie Mac said.

The latest drop in rates is the seventh in as many weeks. Mortgage rates have been easing since late October, when they reached 7.79%, the highest level since late 2000.

Retail sales rise 0.3% in November

Americans picked up their spending from October to November unexpectedly as the unofficial holiday season kicked off, underscoring the power of shoppers despite elevated prices.

Retail sales rose 0.3%, in November from October, when sales fell 0.2%, according to the Commerce Department on Thursday. Sales were expected to decline again in November due to a myriad of issues, including uncertainty over the economy. Excluding car and gas sales, retail sales rose 0.6%.

As they have been doing for much of the year, American consumers, a huge engine for economic growth in the U.S., hit the stores, shopped online, went out to restaurants or traveled.