Mortgage rates fell to their lowest level in more than a year, reducing borrowing costs during the peak season for home buying.
The average rate for a 30-year fixed mortgage was 3.59%,
Mortgage rates tracked a sharp drop in yields last week for the benchmark 10-year Treasuries. Low borrowing costs will add to demand for the tight supply of homes on the market this spring, according Keith Gumbinger, vice president of mortgage-data company HSH.com.
"To the extent they incentivize more wannabe homebuyers into the marketplace, that only puts more upward pressure on prices," he said in an interview Wednesday.
