30- year US mortgage rate rises to 6.39%

By A LEX VEIGA Associated Press

THE AVERAGE LONGterm U.S. mortgage rate edged higher this week after a two-week drop, a modest move in line with a mostly moderate shift in homeloan rates in recent weeks.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 6.39% from 6.35% last week. The average rate a year ago was 5.25%.

The average benchmark rate has moved lower in seven of the last 10 weeks since reaching a high for this year of 6.73% in early March. Still, it remains elevated relative to 2020 and 2021, when the average rate fell below 3%. High rates can add hundreds of dollars a month in costs for homebuyers, limiting how much buyers can afford at a time when the housing market has slowed, but remains unaffordable to many Americans after years of soaring home prices.

“Higher mortgage rates have slowed home purchase activity during a time in the year when typically home shoppers are out in full force,” said Lisa Sturtevant, chief economist at Bright MLS. Sales of previously occupied U.S. homes fell 23.2% in the 12 months ended in April, marking nine straight months of annual sales declines of 20% or more, according to the National Association of Realtors. The national median home price fell to $388,800 last month — down 1.7% from a year earlier and the biggest year-over-year drop since January 2012, the NAR said Thursday. The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, held steady this week at 5.75%. A year ago, it averaged 4.43%, Freddie Mac said.