US mortgage rates for a 30-year loan fell to 2.96% from 2.98% last week, the lowest level since February 18. The drop to 2.96% was the fourth in five weeks.
Mortgage rates reached a record low of 2.65% in January but have climbed above 3% this year on increased optimism of economic rebound.
Lower costs of borrowing have fueled the housing market for buyers looking for properties in the American suburbs.
Shortage of properties has hiked prices up in the US amid a drop in mortgage rates.
SPDR Homebuilders ETF is currently gaining. XHB is up 0.40%
