Average Rate on 30-year Mortgage in the US Slips to 6.78%

By ALEX VEIGA AP Business Writer

The average rate on a 30-year mortgage in the U.S. edged lower this week, ending a six-week climb.

The rate slipped to 6.78% from 6.79% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.4%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week. The average rate slipped to 5.99% from 6% last week. A year ago, it averaged 6.76%, Freddie Mac said.

Mortgage rates are influenced by several factors, including the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans. Bond yields have been rising in recent weeks following encouraging reports on inflation and the economy.

Last week, bond yields surged on expectations that President-elect Donald Trump’s plans to lower tax rates, increase tariffs and reduce regulation could ultimately lead to higher U.S. government debt and inflation, along with faster economic growth.

Pictured at top: In this Oct. 6, 2020, file photo, a real estate brokerage sign is seen in front of a house in Norwood, Mass. (AP Photo | Steven Senne, File)

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