Average 30-year mortgage rate snaps 3-week slide

The average rate on a 30-year mortgage in the U.S. rose this week to its highest level since late November, reflecting a recent uptick in the debt safety yields that lenders use as a navigator to worth home loans.

The rate rose to 6.72% from 6.6% last week, mortgage buyer Freddie Mac said Thursday. The rate is now higher than it was a year ago, when it averaged 6.67%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home borrowing to a lower rate, also rose this week. The average rate increased to 5.92% from 5.84% last week. A year ago, it averaged 5.95%, Freddie Mac said.

The average rate on a 30-year mortgage is now the highest it’s been since Nov. 27, when it was at 6.81%.

Elevated mortgage rates and rising home prices have kept homeownership out of reach of many would-be homebuyers. While sales of previously occupied U.S. homes rose in November for the second straight month, the housing trade remains in a slump and on track for its worst year since 1995.

Mortgage rates are influenced by several factors, including the moves in the profit on U.S. 10-year Treasury bonds.

debt safety yields shot up Wednesday after the Federal savings signaled that it will likely deliver fewer cuts to rates next year than it projection just a few months ago. While the central lender doesn’t set mortgage rates, its actions and the trajectory of worth rise influence the moves in the 10-year Treasury profit.

The profit, which was below 3.7% as recently as September, was at 4.56% in midday market activity Thursday.