Long-term mortgage rate ticks up slightly to 6.16%

"Mortgage rates are influenced by several factors, from the Federal Reserve's interest rate policy decisions to bond market investors' expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The 10-year yield was at 4.17% at midday Thursday. The average rate on a 30-year mortgage has been mostly holding steady in recent weeks"

"The Fed doesn't set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates. All told, the average rate on a 30-year mortgage ended last year nearly a percentage point lower than at the start of 2025, helping boost home shoppers' purchasing power toward the end of the year."

The average 30-year mortgage rate increased to 6.16% this week, up from 6.15% the prior week and down from 6.93% a year earlier. The average 15-year fixed rate rose to 5.46% from 5.44% last week and was 6.14% a year ago. Mortgage rates track the 10-year Treasury yield, which stood at 4.17% at midday Thursday. Rates eased starting in July as Fed rate cuts began in September and continued last month. Lower long-term yields from bond demand can translate into lower mortgage rates and had boosted purchasing power late last year, supporting home sales though November slowed year-over-year.

Read at Fast Company