The average rate on a 30-year U.S. home loan edged higher again this week, remaining stuck near 6.5% for the sixth straight week and keeping mortgage costs elevated for would-be homebuyers.
Freddie Mac said Thursday that the average rate on a 30-year fixed mortgage rose to 6.49%, up from 6.47% a week earlier. A year ago, the rate stood at 6.77%.
Rates on 15-year fixed mortgages, often used by homeowners refinancing an existing loan, also moved higher. The average climbed to 5.84% from 5.81% last week. A year ago, that rate was 5.89%.
Freddie Mac said the 30-year mortgage rate has stayed relatively stable over the past six weeks, even as purchase activity has eased modestly and refinancing has picked up somewhat in response to current rate levels.
Even small changes in mortgage rates can affect affordability, adding hundreds of dollars to a borrower’s monthly payment and reducing the size of the home a buyer can qualify for. For many households, the difference between rates in the mid-6% range and those closer to 6% can determine whether a purchase feels manageable.
Mortgage pricing is shaped by a mix of forces, including Federal Reserve interest-rate policy, inflation expectations and investor views of the broader economy. Home loan rates tend to move in the same direction as the 10-year Treasury yield, which lenders use as a key benchmark.
The recent stretch of higher rates has helped keep many prospective buyers on the sidelines, even as the spring housing season moves forward. National sales of previously occupied homes rose 3.2% in May from April to a seasonally adjusted annual rate of 4.17 million units, the fastest pace since December, but sales remain well below the long-term norm of about 5.2 million.
That sales pattern reflects a housing market still constrained by affordability and limited supply. Although long-term mortgage rates are lower than they were a year ago, they remain well above the ultralow levels seen during the pandemic, and buyers continue to face elevated home prices in many markets.