US housing watch: 30-year mortgage rate edges up to 6.22%; rise ends four-week decline as bond yields ease

The average long-term US mortgage rate rose slightly this week, snapping a four-week decline that had brought borrowing costs to their lowest level in over a year, AP reported.Mortgage buyer Freddie Mac said on Thursday that the average rate on a 30-year fixed mortgage ticked up to 6.22% from 6.17% a week earlier. A year ago, the rate stood at 6.79%. Last week’s figure was the lowest since October 3, 2024, when it reached 6.12%.Rates on 15-year fixed mortgages – typically favoured by homeowners looking to refinance- also moved higher to 5.5% from 5.41% last week. The rate averaged 6% a year earlier, according to Freddie Mac.Mortgage rates are influenced by a mix of factors, including the Federal Reserve’s interest rate decisions and investors’ expectations for inflation and growth. They often move in tandem with the 10-year Treasury yield, which serves as a benchmark for pricing home loans.The 10-year Treasury yield was at 4.09% on Thursday, down from 4.16% the previous day. Lower borrowing costs typically help boost homebuyers’ purchasing power and enable existing homeowners to refinance at more favourable terms.