Average US long-term mortgage rate barely budges, holding near 6%

By ALEX VEIGA, AP Business Writer

The average long-term U.S. mortgage rate barely budged this week, staying close to 6% as the spring home-buying season nears.

The benchmark 30-year fixed rate mortgage rate edged up to 6.11%, essentially flat compared to last week when it was 6.1%, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.89%.

This is the latest increase since the average rate eased three weeks ago to 6.06%, its lowest level in more than three years.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also ticked up this week. That average rate inched up to 5.5% from 5.49% last week. A year ago, it was at 6.05%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year Treasury yield was at 4.21% at midday Thursday, down from 4.23% a week ago.

The latest increase in mortgage rates comes after the Fed decided last week to pause cuts to its main interest rate after lowering rates three times in a row to close out 2025 in an attempt to shore up the job market.

The central bank doesn’t set mortgage rates, but its decisions to raise or lower its short-term rate are watched closely by bond investors and can ultimately affect the yield on 10-year Treasurys that influence mortgage rates.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. The combination of higher mortgage rates, years of skyrocketing home prices and a chronic shortage of homes nationally following more than a decade of below-average home construction have left many aspiring homeowners priced out of the market. Sales of previously occupied U.S. homes remained stuck last year at 30-year lows.

Still, the pullback in mortgage rates that began late last summer helped give sales of existing U.S. homes a boost toward the end of last year. In December, sales jumped 5.1% from the previous month.

Home shoppers who can afford to buy at current mortgage rates are benefiting from less competition and a wider selection of properties on the market, trends that are giving buyers more leverage at the negotiating table.

Nearly two-thirds of all homebuyers last year paid less than the original list price — the highest share since 2019, according to a recent analysis by Redfin.

Economists generally expect mortgage rates to stay relatively stable in the coming months, with forecasts calling for the average rate on a 30-year mortgage to hover around 6%.