Average long-term mortgage rates in the U.S. rose again this week, staying at their highest level since July.
According to major mortgage lender Freddie Mac, the benchmark 30-year fixed rate loan rate rose to 6.93% from 6.91% last week. A year ago, it was 6.66%. It rose for the fourth consecutive week.
The rise in mortgage costs reflects an increase in bond yields, particularly the 10-year Treasury yield, which lenders use as a guide to pricing mortgages.
The yield on the 10-year U.S. Treasury rose to 4.66% this week from 3.62% in mid-September.
The increase comes as home prices steadily rise.
Rising mortgage rates and soaring home prices are putting home ownership out of reach for many prospective home buyers.
U.S. existing home sales rose for the second straight month in November, but the housing market remains depressed and on track for its worst year since 1995.
A government report on December home sales is expected to be released later this month.
Interest rates have been rising since the Federal Reserve last month said it expected to raise its benchmark interest rate only twice this year, down from the four cuts expected in September.
The Fed is putting the brakes on rate cuts because inflation, although down from its peak in mid-2022, remains above the central bank's 2% target.
Economists also worry that President-elect Donald Trump's economic policies, particularly his plans to significantly raise tariffs on imported goods, could accelerate inflation.
The average interest rate on 15-year fixed-rate mortgages, popular among homeowners looking to refinance, rose to 6.14% from 6.13%, also the highest level since July.
A year ago, it was 5.87%, according to Freddie Mac.
