Average US long-term mortgage rate climbs to 6.46%, the highest level in nearly 7 months

The average long-term U.S. mortgage rate climbed for the fifth straight week, reaching its highest level in nearly seven months, another setback for home shoppers in the midst of the spring homebuying season.

The benchmark 30-year fixed rate mortgage rate rose to 6.46% from 6.38% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.64%.

The last time the average rate was higher was Sept. 4, when it was at 6.5%.

When mortgage rates rise, they can add hundreds of dollars a month in costs for home shoppers, limiting what they can afford to buy.

Only five weeks ago, the average rate had dropped to just under 6% for the first time since late 2022, but it has been rising as skyrocketing oil prices due to the war with Iran fuel worries about high inflation.

Meanwhile, borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week. That average rate rose to 5.77% from 5.75% last week. A year ago, it was at 5.82%, Freddie Mac said.