Mortgage rates rise to 6.30% on 30-year loan after four-week slide

MCLEAN, Va. — The average rate on a 30-year U.S. mortgage ticked up to 6.30% this week from 6.26% last week, ending a four-week slide that had brought borrowing costs to their lowest level in nearly a year, mortgage buyer Freddie Mac said Thursday. The slight increase also affected 15-year fixed-rate loans, which rose to an average of 5.49% from 5.41% the prior week.

Mortgage rates remain elevated compared with a year ago, when the 30-year averaged 6.08% and the 15-year averaged 5.16%, Freddie Mac reported. The movement underscores how finely balanced the market is as lenders and investors respond to policy signals and shifts in bond yields.

Mortgage rates generally track the 10-year Treasury yield, which lenders use as a guide to price home loans. The 10-year yield was 4.19% in midday trading Thursday, up from 4.16% late Wednesday, a move that helps explain the uptick in mortgage costs. Economists and market watchers note that mortgage pricing also reflects investors expectations for inflation and economic growth, not just Federal Reserve policy.

The rise followed several weeks of declines that began in late July as markets anticipated the Federal Reserve would cut its benchmark...