The average rate on a 30-year mortgage in the U.S. fell this week, though it is near 7 percent after rising mostly in recent weeks.
The rate fell to 6.81 percent from 6.84 percent last week, according to Mortgage Buyers Freddie Mac said Wednesday. That’s still lower than a year ago, when the rate averaged 7.22 percent.
Borrowing costs on 15-year fixed-rate mortgages, used by homeowners looking to refinance their home loans at lower rates, rose this week. The average rate rose to 6.1% from 6.02% last week. A year ago, it averaged 6.56 percent, Freddie Mac said.
Mortgage rates are affected by a number of factors, including the yield on US 10-year Treasury bonds, which lenders use as a guide to pricing home loans. Yields, which hovered around 4.4 percent most of last week and were down from 3.70 percent in September, have eased this week. It was at 4.23% at noon on Wednesday.
High mortgage rates and rising home prices have put home ownership out of reach for many buyers. American home sales are on track for their worst year since 1995.