Average US 30-year mortgage rate surges to 6.32%, adding pressure to buyers facing high home prices

The average rate on a 30-year mortgage in the U.S. surged to 6.32% this week, adding pressure on home buyers facing sky-high prices and a limited supply of houses for sale.

The rate ticked up from 6.12% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.57%.

Two weeks ago, the average rate slipped to its lowest level in two years — 6.08% — boosting home shoppers’ purchasing power as they navigate a housing market with prices near all-time highs.

Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield on the 10-year Treasury was 4.10% Thursday, up from 3.62% in mid-September, just days before the Fed slashed its benchmark lending rate by a half a point.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, increased again this week. The average rate rose to 5.41% from 5.25% last week. A year ago, it averaged 6.89%, Freddie Mac said.