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Mortgage rates rose slightly this week as Treasury yields moved modestly higher.
The average 30-year mortgage rate was 6.89% this week through Wednesday, up from 6.86% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was 6.03% from 6.01%.
10-year Treasury yields, which mortgage rates closely track, were choppy this week as markets continued to digest the US's credit downgrade and deficit implications of the Republican tax plan.
Read more: Is it a good time to buy a house?
Yields dropped slightly in recent days after President Trump agreed to delay European Union tariffs and new data showed that consumer confidence rebounded in May. They’re currently around 4.43%, a similar level to last week.
Although mortgage rates remain slightly lower than they were a year ago, plenty of prospective buyers are still struggling to find affordable options. Home contract signings dipped sharply in April, according to National Association of Realtors data released Thursday, a testament to the impact of elevated mortgage rates and recent market volatility.
“High mortgage rates will continue to pose significant challenges for homebuyers,” Realtor.com senior economist Jake Krimmel said in a statement.
Although rates remained relatively high, mortgage applications to purchase a home improved 3% this week through Friday, according to the Mortgage Bankers Association. Refinancing applications, meanwhile, dropped 7%.
Read more: Mortgage and refinance interest rates today and HELOC rates today
“Aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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