WASHINGTON : The average interest rate on 30-year mortgage loans rose to 6.26%, up slightly from 6.24% last week, according to new data released by Freddie Mac. Despite the uptick, rates remain below the 6.84% recorded during the same week last year. Just three weeks ago, the average rate stood at 6.17%, marking its lowest point in over a year.

Short-term borrowing costs also inched upward. The average rate on 15-year mortgages increased to 5.54%, compared to 5.49% last week and 6.02% during the same period in 2023.

Since September 2022, 30-year mortgage rates have held above the 6% mark, following a sharp rise from historic lows seen during the pandemic. This elevated rate environment has weighed heavily on the housing market. Existing home sales have hovered at an annual pace of around 4 million units through 2023, well below the typical 5.2 million units seen in previous years.

Experts say mortgage rates are shaped by a complex mix of factors, from the Federal Reserve’s interest rate policies to investor sentiment in the bond market, particularly around economic growth and inflation. Financial institutions also rely heavily on the yield of 10-year US Treasury bonds.