Mortgage rates tick higher to 6%

Mortgage rates ticked higher to 6% this week, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage rose to 6% from last week’s reading of 5.98%. 

The average rate on a 30-year loan was 6.63% a year ago.

“In fact, rates are down nearly a full percentage point from this time in 2024, spurring activity from buyers, sellers and owners,” said Sam Khater, Freddie Mac’s chief economist. “As a result, refinance activity is up, and purchase applications are ahead of last year’s pace.”

The average rate on a 15-year fixed mortgage increased to 5.43% from last week’s reading of 4.44%.

RENT BECOMING MORE AFFORDABLE FOR MANY AMERICANS AS MARKET STABILIZES

Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Though mortgage rates are not directly affected by the Fed’s interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield hovered around 4.02% as of Thursday afternoon.