Yields on Fannie Mae and Freddie Mac mortgage securities declined to the lowest in more than three weeks, signaling that interest rates on new home loans will fall and ease the U.S. housing slump.

Yields on Washington-based Fannie Mae’s current-coupon 30- year fixed-rate mortgage bonds tumbled 0.18 percentage point to 4.53% as of 3:53 pm in New York, the lowest since June 3, amid a plunge in rates on benchmark Treasuries, according to data compiled by Bloomberg.