Mortgage Rates Drop to New Low for the Year

(Los Angeles Times/TNS) -

Mortgage rates have hit a fresh low for the year.

The average for a 30-year fixed loan fell to 3.80 percent this week, down from 3.93 percent a week earlier, mortgage company Freddie Mac said Thursday. Lenders, meanwhile, offered a 15-year fixed mortgage at 3.09 percent, compared to 3.20 percent last week.

Plunging oil prices and concerns over the global economy drove yields on the 10-year Treasury note this week to their lowest level since May 2013.

That sent mortgage rates down as well, because they tend to track the long-term Treasury yield.

The mortgage giant’s survey asks lenders each Monday morning through midday Wednesday about the terms they are offering to low-risk borrowers on loans up to $417,000.