The average rate on a 30-year mortgage in the U.S. rose for the sixth straight week, returning to its highest level since early July, according to the Associated Press.
The rate ticked up to 6.79% from 6.72% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.5%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also edged higher this week. The average rate rose to 6% from 5.99% last week. A year ago, it averaged 6.81%.
Mortgage rates are influenced by several factors, including the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans. Bond yields have been rising following encouraging reports on inflation and the economy.
The yield on the 10-year Treasury was at 4.36% at midday Thursday. It was at 3.62% as recently as mid-September.
The average rate on a 30-year home loan hasn’t been this high since July 11, when it was 6.89%.
Applications for loans to refinance a mortgage fell 19%, though they were still 48% higher than in the same week last year, when rates were higher.
