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The
rate rose to 6.72% from 6.6% last week, mortgage buyer Freddie
Mac said Thursday. The rate is now higher than it was a year
ago, when it averaged 6.67%.
Borrowing costs on 15-year fixed-rate mortgages, popular with
homeowners seeking to refinance their home loan to a lower rate,
also rose this week. The average rate increased to 5.92% from
5.84% last week. A year ago, it averaged 5.95%, Freddie Mac
said.
The average rate on a 30-year mortgage is now the highest it's
been since Nov. 27, when it was at 6.81%.
Elevated mortgage rates and rising home prices have kept
homeownership out of reach of many would-be homebuyers. While
sales of previously occupied U.S. homes rose in November for the
second straight month, the housing market remains in a slump and
on track for its worst year since 1995.
Mortgage rates are influenced by several factors, including the
moves in the yield on U.S. 10-year Treasury bonds.
Bond yields shot up Wednesday after the Federal Reserve signaled
that it will likely deliver fewer cuts to rates next year than
it forecast just a few months ago. While the central bank
doesn’t set mortgage rates, its actions and the trajectory of
inflation influence the moves in the 10-year Treasury yield.
The yield, which was below 3.7% as recently as September, was at
4.56% in midday trading Thursday.
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