Average long-term U.S. mortgage rates edged higher this week, ending a three-week decline as bond yields rose amid oil price pressures linked to the war with Iran.Mortgage buyer Freddie Mac said Thursday the benchmark 30-year fixed mortgage rate rose to 6% from 5.98% last week. The average rate was 6.63% a year ago, the AP reported.The modest increase snapped a three-week slide in borrowing costs, with mortgage rates hovering near the 6% mark for most of this year. Last week’s average pushed the rate below 6% for the first time since September 2022, hitting its lowest level in nearly three and a half years.Mortgage rates are influenced by many factors, including the Federal Reserve’s interest rate policy, investors’ expectations about inflation and economic growth, and movements in the bond market.They typically track the direction of the 10-year US Treasury yield, which lenders use as a benchmark for pricing home loans.The 10-year Treasury yield rose to 4.14% by Thursday afternoon, from about 4% a week earlier.Treasury yields have risen in recent days as rising oil prices have stoked new inflation concerns, potentially complicating the Federal Reserve’s plans to cut interest rates.
