Mortgage rates drop to lowest in almost three years

NEW YORK, April 14 (UPI) -- Mortgage interest rates continued to fall, reaching their lowest rate in nearly three years, Freddie Mac's latest Primary Mortgage Market Survey showed.

The mortgage rate was at a yearly low for the second consecutive week. The Freddie Mac report last week showed 30-year fixed-rate mortgages at 3.59 percent, the lowest since February 2015.

This week's rate was 3.58 percent. At this point last year, the same 30-year mortgage was 3.67 percent. This week's rate was also the lowest rate since May 2013 and good news for buyers and refinanciers.

"Demand for Treasuries remained high this week, driving yields to their lowest point since February," Freddie Mac's chief economist, Sean Becketti said. "In response, the 30-year mortgage rate fell one basis point to 3.58 percent. This rate represents yet another low for 2016 and the lowest mark since May 2013."

However, government bonds yields rose this week, which can effect mortgage rates. The 10-year Treasury yield jumped from 1.73 percent Monday to an intraday high of 1.79 percent Wednesday.