Mortgage Rates Drop

Mortgage Rates Drop to Lowest Level Since May

US mortgage rates dropped for a third consecutive week, reaching their lowest level since late-May, a move that bodes well for the hard-hit housing market.

Interest rates on U.S. 30-year fixed-rate mortgages dropped to 5.14 percent for the week ending July 16, down from the previous week’s 5.20 percent, according to a survey released on Thursday by home funding company Freddie Mac.

That is the lowest since the week ended May 28, but significantly higher than the record low of 4.78 percent set the week ending April 2. Freddie Mac started the Primary Mortgage Market Survey in 1971.

The drop in rates is a positive for the U.S. housing market, which has been showing some signs of stabilization, with sales rising and home price declines moderating in many regions of the country.