A for sale sign stands outside a residence in Niles, Ill., Monday, July 1, 2024. On Wednesday, July 3, 2024, the Labor Department reports on the number of people who applied for unemployment benefits last week. The average rate on a 30-year mortgage rose this week, pushing up borrowing costs on a home loan for theThe rate rose to 6.95% from 6.86% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.81%.
The uptick follows a four-week pullback in the average rate, which has mostly hovered around 7% this year.. The elevated mortgage rates have been a major drag on home sales, which remain in a three-year slump. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, pushing the average rate to 6.25% from 6.16% last week. A year ago, it averaged 6.24%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.