US mortgage rates declined last week to an almost three-month low, sparking lending activity for home refinancing and purchases in a welcome sign for the struggling housing market.

The contract rate on a 30-year mortgage declined 15 basis points, the most since November, to 6.73% in the final week ended February, according to Mortgage Bankers Association data released Wednesday.

Mortgage rates track treasury yields, which have fallen in the past week as investors seek safety amid a sell-off in stocks. Yields have also declined after recent data showed a weak start to the year for the economy.