U.S. fixed mortgage rates fell to a year low as 10-year bond yields declined, said the Primary Mortgage Market Survey released Thursday by Freddie Mac.
The U.S. mortgage giant said the 30-year fixed-rate mortgage ( FRM) was 3.97 percent in the week ending Thursday, down from the rate of 4.12 percent last week, lower than the rate of 4.28 percent a year ago.
The 15-year FRM, a popular guide for those looking to refinance, was 3.18 percent this week, lower than the rate of 3.3 percent last week.
"Mortgage rates were down sharply following the decline in the 10-year Treasury yield for the second straight week,"said Freddie Mac's chief economist Frank Nothaft in a statement.
"Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe," said Nothaft.