Mortgage rates drop to a 2-month low as the US job market shows signs of slowing

• The 30-year fixed-rate mortgage fell to a two-month low, the Mortgage Bankers Association said. 
• The fifth straight weekly decline took place as the March jobs report showed signs of cooling. 
• The key lending rate was still much higher than the year-ago period. 

Mortgage rates dropped to a two-month low as the labor market in the world's largest economy showed signs of a slowdown, prompting a surge in weekly applications for home loans. 

The average contract interest rate for a 30-year fixed-rate mortgage fell to 6.30% in the week that ended April 7 from 6.40% in the prior week, the Mortgage Bankers Association said Wednesday.