WASHINGTON, Aug. 22 (Xinhua) -- The U.S. benchmark mortgage rate dropped to nearly 3-year low last week, the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.

For the week ending Aug. 22, the 30-year fixed-rate mortgage (FRM) dropped to 3.55 percent from the previous week's 3.6 percent, reaching its lowest level since November 2016.

The benchmark mortgage rate was also significantly lower than the averaged 4.51 percent a year ago.

Besides, Freddie Mac noted that the 15-year FRM this week decreased to 3.03 percent, lower than the previous week's 3.07 percent, and much lower than 3.98 precent seen in the same period of the previous year.

"The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years," said Sam Khater, chief economist of Freddie Mac.

Freddie Mac is a corporation founded by U.S. Congress, aimed at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loaners. It has been conducting weekly surveys on U.S. mortgage rate since April 1971. Enditem

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