The average rate on a 30-year U.S. mortgage edged higher this week, though it remains relatively near its low point so far this year.
The uptick brings the average long-term mortgage rate to 6.22% from 6.19% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.6%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week. The rate averaged 5.54%, up from 5.44% last week. A year ago, it averaged 5.84%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The 10-year yield was at 4.12% at midday Thursday, slightly higher than it was a week ago.
The rise in mortgage rates comes a week after the Federal Reserve cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026.
The Fed doesn’t set mortgage rates, so even when it cuts its short-term rates that doesn’t necessarily mean rates on home loans will necessarily decline.
