By the end of this year, the 30-year fixed-rate mortgage could drop to 3.3%, which would put this popular loan product near its lowest average since Freddie Mac began tracking back data 48 years.

Lawrence Yun, chief economist for the National Association of REALTORS®, made the prediction after seeing the latest Labor Department report last week, showing a slowing job market. “The economy is clearly weakening, and the employment conditions show a lagging indicator,” Yun says. “The soft job gains in August assures that the Federal Reserve will be cutting interest rates.”