Yields on Fannie Mae and Freddie Mac mortgage securities fell for a second day Monday, signaling that interest rates on new home loans may decline.

Yields on Fannie Mae's current-coupon 30-year fixed-rate mortgage bonds dropped 7 basis points, to 4.72%, as of 9:06 a.m. in New York, down from 5.07% on June 10 but up from 3.94% on May 20.

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