Home Buying

The average rate on a 30-year mortgage just went up

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, increased again this week.

Five years ago, the average rate on a 30-year fixed mortgage was 3.65 percent, according to the Federal Reserve of St. Louis. Adobe Stock

By MATT OTT, Associated Press

October 3, 2024

1 minute to read

The average rate on a 30-year mortgage in the U.S. rose to 6.12 percent this week, the first increase in seven weeks.

The rate ticked up from 6.08 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.49 percent. Five years ago, it was 3.65 percent, according to the Federal Reserve of St. Louis.

Last week, the average rate slipped to its lowest level in two years, boosting home shoppers’ purchasing power as they navigate a housing market with prices near all-time highs.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, increased again this week. The average rate rose to 5.25 percent from 5.16 percent last week. A year ago, it averaged 6.78 percent, Freddie Mac said. Five years ago it was 3.14 percent, according to the Federal Reserve.

Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield on the 10-year Treasury was at 3.82 percent Thursday, up from 3.78 percent last week.