Sept 17 (Reuters) – The interest rate on the most popular U.S. home loan dropped last week to its lowest in a year, sending homeowners racing to lock in cheaper borrowing costs as slowing jobs growth and expectations for a Federal Reserve interest-rate cut drive down yields on benchmark Treasuries.

The Mortgage Bankers Association on Wednesday said the contract rate on a 30-year, fixed-rate mortgage dropped 10 basis points in the wee ended September 12 to 6.39%.