THE AVERAGE LONG-TERM US MORTGAGE RATE EDGED UP TO 7.19% THIS WEEK, SLIGHTLY BELOW ITS 2023 HIGH

The average long-term U.S. mortgage rate edged up again this week, another setback for wouldbe homebuyers navigating an increasingly less affordable housing market.

The average rate on the benchmark 30-year home loan rose to 7.19% from 7.18% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.29%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, also rose. The average rate rose to 6.54% from 6.51% last week. A year ago, it averaged 5.44%, Freddie Mac said.

High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans. They also discourage homeowners who locked in low rates two years ago from selling.

“Supply may loosen up some as we head to the end of the year, but prospective homebuyers waiting for mortgage rates to come down should expect no major relief until next year,” said Lisa Sturtevant, chief economist for Bright MLS.

The weekly average rate on a 30-year mortgage has remained above 7% since August, surging four weeks ago to 7.23%, a 22-year high.

Mortgage rates have been echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield has been climbing amid expectations that the Federal Reserve will keep short-term interest rates higher for longer to fight inflation.

On Wednesday, Federal Reserve policymakers signaled that they expect to raise rates once more this year and envision their key rate staying higher in 2024 than most analysts had expected.

The 10-year Treasury yield surged to 4.47% in midday trading Thursday, up from 4.40% late Wednesday and from 0.50% three years ago. It’s now near its highest level since 2007.