Mortgage rates climbed for the fourth straight week as a resilient U.S. economy continues to influence financial markets, according to data released Thursday by Freddie Mac.
The average rate on a 30-year fixed mortgage hit 6.54 percent this week, the highest level since early August.
The latest figure marks a 10-basis-point increase from the previous week. In comparison, the rate on a 30-year mortgage stood at 7.79 percent a year ago, offering some relief to borrowers even as costs remain elevated.
Freddie Mac also reported an uptick in the average rate for 15-year fixed mortgages, which rose to 5.71 percent, up from 5.63 percent last week. Like the 30-year, the 15-year mortgage rate is significantly lower than a year ago, when it averaged 7.03 percent.
The steady rise in rates underscores the ongoing challenge for prospective homebuyers, as borrowing costs remain high despite a slight easing from last year’s peaks.
The Federal Reserve cut its benchmark interest rate last month but since then the yield on longer-term Treasuries, which are most closely associated with mortgage rates, have climbed. On Thursday, the 10-year Treasury had a yield of 4.198 percent, up from 3.62 percent just before last month’s Fed decision.
On Wednesday, the National Association of Realtors said that sales of existing homes fell to the lowest level in 14 years.