Mortgage Rates in the U.S. Decline With 30-Year Loan at 3.98%

U.S. mortgage rates declined, sending long-term borrowing costs to the second-lowest level on record after an unexpected increase in home sales.

The average rate for a 30-year fixed loan dropped to 3.98 percent in the week ended today from 4 percent, Freddie Mac said in a statement. It reached 3.94 percent last month, the lowest in Freddie Mac records dating to 1971. The average 15-year rate fell to 3.30 percent this week from 3.31 percent, according to the McLean, Virginia-based mortgage-finance company.