Mortgage rates drop to their lowest levels in two months amidst market turbulence

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Home loan rates slipped to their lowest levels in two months, in line with the broader bond market, while all observers are well informed about the housing market looking for money. clues as to how the crucial spring sale will be structured.

Freddie Mac said Thursday that the 30-year fixed-rate mortgage stood at an average of 4.07% the week of May 16, down three basis points. This is the third consecutive weekly decline in the popular product, which has returned to its lowest level of 2019.

The 15-year fixed rate mortgage averaged 3.53%, down from 3.57%. The 5-year Hybrid Hybrid Adjustable Rate Mortgage averaged 3.66%, up three basis points.

Related: 3 original alternatives for homebuyers in a difficult real estate market

Fixed rate mortgages follow the evolution of the 10-year US Treasury reference note

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, which rebounded when investors took money out of stocks. As demand and prices rise, yields decline. (Here's an overview of the progress of mortgage applications when rates go down and vice versa.)

See: Is the era of double-digit house price gains behind us?

The housing market slowed down in 2018, with rising mortgage rates and rising house prices putting them out of the reach of too many people. But the Americans still want to be homeowners, it seems. New home sales increased in March and some builders are eagerly awaiting an "extended" sales season for their products.

However, new construction still accounts for only about one-tenth of the housing market. The National Association of Realtors will report April sales of previously owned homes next week. Glenn Kelman, CEO of Redfin Corp., had a good read last week.

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, on a call to discuss the benefits of the company.

"This acceleration of revenues and traffic is part of a larger trend fueled in part by the improvement in the housing market," said Mr. Kelman. "Sometimes, in March and April, we had as many requests as we could manage in both parts of our brokerage and in each of our new businesses."

Related: New Redfin Program Will Allow Agentless Home Shopping