The average long-term mortgage rates in the United States dropped for the third consecutive week, with the benchmark 30-year rate again moving its lowest-mark since May 2013.
The average for a 15-year mortgage declined below three percent for the first time since then.
Mortgage has become a popular choice for Americas who are refinancing.
Mortgage firm Freddie Mac on Thursday said that the nationwide mortgage average for a 30-year period dropped to 3.66 percent this week from last week’s 3.73 percent. Moreover, the rate for the 15-year loan fell to 2.98 percent from last week’s 3.05 percent.
The ongoing fall in the mortgage rates lured heavy prospective buyers, as number of applications for buying marked their largest weekly gain last week in more than six years.
According to the Mortgage Bankers Association, the number of new applications surged 49.1 percent which is the biggest weekly rise since November 2008.
Last year, the 30-year mortgage was at 4.41 percent, while the 15-year mortgage stood at 3.45 percent.
Despite the Federal Reserve Bank had ended its monthly bond purchases in October last year, the mortgage rates have remained at low levels.
The central bank’s actions were meant to hold down the long-term rates.
The decline in mortgage rates comes at a time when the government’s bond yields have hit the record low levels.
The mortgage rates are often followed by the bond yields on the 10-year Treasury note, which has dropped below two percent. The bond yields increase with the fall in prices.
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