Mortgage rates held near 7%. The average rate on the standard 30-year fixed mortgage edged lower to 6.78%, according to a survey of lenders released Thursday by the mortgage-finance firm Freddie Mac.

Mortgage rates, while still elevated, have fallen into the 6% to 7% range and should continue easing at a slow pace. But the road there could be long and bumpy. It's unlikely we'll see the average rate on a 30-year fixed mortgage drop below 6% in the next several months.

To better understand the future direction of mortgage rates, we need to understand what factors influence them.

The Federal Reserve cut interest rates by a quarter-point on Thursday, even as mortgage rates have been rising since September.