**Mortgage Rates Rise for Sixth Consecutive Week, Reaching Early July Levels**

The average rate on a 30-year mortgage in the United States has increased for the sixth straight week, returning to its highest level since early July, according to Freddie Mac. This week, the rate inched up to 6.79%, a slight increase from last week's 6.72%. Despite this rise, the current rate remains below the 7.5% average recorded a year ago.

Costs for borrowers have increased as mortgage rates climb, impacting homebuyers' purchasing power at a time when home prices are still near record highs. This has added financial strain, particularly since the housing market has been in a slump since 2022. Homeowners seeking to refinance their loans with a 15-year fixed-rate mortgage also saw a rise, with rates edging up to 6% from last week's 5.99%. A year ago, the average rate for a 15-year mortgage was 6.81%.

These upward movements in mortgage rates are influenced by various factors, notably the yield on U.S. 10-year Treasury bonds, which lenders use to set home loan rates. Recently, bond yields have been rising in response to favorable reports on inflation and the economy. This week saw a significant surge in bond yields, driven by expectations surrounding President-elect Donald Trump's potential policies, which include higher tariffs, lower tax rates, and reduced regulation—factors anticipated to spur economic growth, inflation, and U.S. government debt. As of midday Thursday, the yield on the 10-year Treasury was 4.36%, up from 3.62% in mid-September.

The average rate on a 30-year mortgage has not reached this height since July 11, when it was 6.89%. Notably, in late September, the rate had dropped to 6.08%, the lowest in two years, following the Federal Reserve's decision to cut its main interest rate for the first time in over four years. Although the central bank does not directly set mortgage rates, its policy changes can influence them indirectly.

"While we still expect mortgage rates to stabilize by the end of the year, they will likely be at a higher level than markets were initially expecting prior to election week," remarked Ralph McLaughlin, senior economist at Realtor.com.

Amid this rising trend, mortgage applications have declined, with recent data from the Mortgage Bankers Association showing a 10.8% drop last week on a seasonally adjusted basis. Applications for refinances also fell by 19%, although they remain 48% higher than the same period last year when rates were higher.

"Rates and borrower demand will likely remain volatile in the coming weeks as financial markets digest both the election results and the Fed's upcoming monetary policy decisions," stated MBA CEO Bob Broeksmit.