The average interest rate for a 30-year mortgage in the United States has decreased slightly this week, although it is still close to the 7% mark after a general trend of increases in recent weeks.
The current rate stands at 6.81%, down from 6.84% recorded last week, according to Freddie Mac’s latest report. This figure shows improvement compared to the same time last year when the average had reached 7.22%.

Meanwhile, the borrowing costs associated with 15-year fixed-rate mortgages, which are favored by homeowners looking to refinance, have seen an uptick this week. The average rate has risen to 6.1%, up from 6.02% just a week prior. This time last year, this category averaged 6.56%, as reported by Freddie Mac.

Several variables affect mortgage rates, one of which is the yield on U.S. 10-year Treasury bonds. This yield serves as a benchmark for lenders when setting rates for home loans. Last week, the yield hovered around 4.4%, experiencing a decline from below 3.70% observed in September, and has now dropped further to 4.23% as of midday Wednesday.

The combination of persistently high mortgage rates alongside increasing home prices has placed homeownership out of reach for many potential buyers. As a result, U.S. home sales are predicted to be the lowest they have been since 1995.