Mortgage rates continued to drop, falling to new yearly lows as the 30-year fixed-rate mortgage hit its lowest level since June 20, 2013. This was also the last time the 30-year FRM averaged below 4%, according to Freddie Mac’s latest Primary Mortgage Market Survey.    

The 30-year, FRM averaged 3.97% for the week ended Oct. 16, down from last week’s 4.12% and 4.28% a year ago.

In addition, the 15-year, FRM fell from 3.30% a week ago to 3.18%. This is also down from 3.33% in 2014.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage came in at 2.92%, falling from 3.05% this week and 3.07% a year ago.

The 1-year Treasury-indexed ARM decreased to 2.38%, compared to 2.42% a week prior and 2.63% a year ago.   

“Mortgage rates were down sharply following the decline in the 10-year Treasury yield for the second straight week. Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe,” said Frank Nothaft, vice president and chief economist with Freddie Mac.

Similarly, Bankrate’s 30-year, FRM averaged 4.01%, decreasing from 4.18% last week.

The 15-year, FRM declined to 3.23%, down from 3.37%, while the 5/1 ARM fell to 3.09%, down from 3.27% a week ago.

“Worries about slower growth in the global economy have unnerved financial markets in recent weeks, and mortgage shoppers are the happy beneficiaries. Mortgage rates have fallen for four consecutive weeks, with the benchmark 30-year fixed mortgage rate at the lowest level since June 2013,” Bankrate’s weekly mortgage report said.

“The 15-year fixed mortgage rate and both the 3-year and 5-year adjustable rate mortgage products are the lowest since May 2013. Both bond yields and mortgage rates have dropped sharply as nervous investors have piled into safe haven, less volatile investments,” the report added.