A for sale sign stands outside a residence in Niles, Ill., Monday, July 1, 2024. On Wednesday, July 3, 2024, the Labor Department reports on the number of people who applied for unemployment benefits last week. – The average rate on a 30-year mortgage rose this week, pushing up borrowing costs on a home loan for theThe rate rose to 6.95% from 6.86% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.81%.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans. Until the Fed begins lowering its short-term rate, long-term mortgage rates are unlikely to budge from where they are now.
“We are still expecting rates to moderately decrease in the second half of the year and given additional inventory, price growth should temper, boding well for interested homebuyers,” said Sam Khater, Freddie Mac’s chief economist.