Mortgage rates for 30-year loans dropped to the lowest level in almost three years, aiding homebuyers during the housing market's busiest season for transactions.
The average rate for a 30-year fixed mortgage was 3.58%,
Mortgage rates have tumbled since the start of the year as concerns of a slowing global economy drove investors to the safety of the government bonds that guide consumer debt. Steady job growth has been fueling demand for a tight supply of listings during the key spring buying season. While competition among home shoppers is pushing up prices, low interest rates are giving buyers an incentive.
"The persistent weakness in the global economy has been a boon to mortgage shoppers," Greg McBride, chief financial analyst at Bankrate.com, said in a phone interview. "It brought rates lower in a year we widely expected them to go higher."
The average 30-year rate has been below 4% since the start of the year. It reached a record of 3.31% in November 2012.
Mortgage rates aren't likely to spike anytime soon. The Federal Reserve decided to hold interest rates unchanged last month to wait for more clarity on whether slower growth abroad will hobble the U.S. economy.
