Average US long-term mortgage rate rises to 6.26%, the third straight increase

The average rate on a 30-year U.S. mortgage edged higher for the third week in a row, though it remains close to its low point this year.

The average long-term mortgage rate ticked up to 6.26% from 6.24% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.84%.

Three weeks ago, the average rate was at 6.17%, its lowest level in more than a year.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched up this week. The rate averaged 5.54%, up from 5.49% last week. A year ago, it was 6.02%, Freddie Mac said.

When mortgage rates rise they reduce homebuyers’ purchasing power. The average rate on a 30-year mortgage has been stuck above 6% since September 2022, the year mortgage rates began climbing from historic lows.

That’s helped kept sales of previously occupied U.S. homes stuck at around a 4-million annual pace going back to 2023. Historically, sales have typically hovered around 5.2 million a year.

While sales have been sluggish this year, they received a boost this fall as mortgage rates eased, remaining below 6.4% since early September. Last month, they accelerated to their fastest pace since February.