US 30-Year Mortgage Rates Hit 6.26% in Third Weekly Rise

The average rate on 30-year fixed mortgages in the United States rose slightly to 6.26 percent for the week ending Thursday, marking the third consecutive weekly increase, according to Freddie Mac's Primary Mortgage Market Survey. The uptick from 6.24 percent last week keeps rates near their lowest levels this year, though still elevated compared to a year ago when they averaged 6.84 percent.

Rates on 15-year fixed mortgages, often used for refinancing, also climbed to 5.54 percent from 5.49 percent. A year earlier, those rates stood at 6.02 percent. Three weeks prior, the 30-year rate had dipped to 6.17 percent, its lowest point in more than a year. Freddie Mac noted that rates have remained relatively stable, fluctuating within a narrow 10-basis-point range over the past month.

Even small increases like this week's 0.02 percentage point rise can affect affordability. For a median-priced home of about $410,800, as reported by the Federal Reserve Bank of St. Louis for the second quarter, such a change adds to monthly payments and lifetime interest costs on a 30-year loan with a standard 3.5 percent down payment. Higher rates generally reduce buyers' purchasing power by...