U.S. mortgage rates fell to the lowest level since March as investors stepped up buying the safest types of bonds, including Treasurys and debt tied to home loans.
Rates for 30-year fixed loans dropped to 5 percent in the week ended Thursday from 5.06 percent last week, Freddie Mac said in a statement. The average 15-year rate was 4.36 percent, the mortgage finance company said.
The fiscal crisis in Greece is pushing investors to buy U.S. Treasurys, whose yields serve as a benchmark for other debt. The yield on the 10-year Treasury note was 3.5407 percent compared with 3.7243 a week ago.
Yields on government-supported bonds tied to home loans are tracking that decline, so mortgage lenders can lower rates and still sell the loans to Freddie Mac and Fannie Mae at a profit.
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