The average interest rate on 30-year mortgage loans in the United States rose this week, ending a three-week decline and increasing borrowing costs for prospective homebuyers during the U.S. spring homebuying season.
U.S. mortgage finance company Freddie Mac said on Thursday that the average rate on mortgage loans rose to 6.3%, up from 6.23% last week and 6.76% in the same week last year.
At the same time, the average rate on 15-year loans, favored by homeowners seeking to refinance their mortgages, increased to 5.64% this week, compared with 5.58% last week and 5.92% in the same week last year, according to the Associated Press.
Mortgage rates are influenced by several factors, starting with key interest rate decisions by the U.S. Federal Reserve and investors’ expectations in the bond market regarding the economy and inflation.
The rise in the average rate on 30-year mortgage loans this week came as the yield on benchmark 10-year U.S. Treasury bonds — used by lenders as a reference for setting home loan rates — climbed to 4.39% by midday trading today, up from 4.34% yesterday.
