The average rate for a 30-year U.S. mortgage edged higher for the third week in a row, though it remains close to its low point in 2025.

The average long-term mortgage rate ticked up to 6.26 percent last week from 6.24 percent the week before, mortgage buyer Freddie Mac stated. A year ago, the rate averaged 6.84 percent.

Four weeks ago, the average rate was at 6.17 percent — the lowest level in more than a year.

Borrowing costs for 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched up last week. The rate averaged 5.54 percent, up from 5.49 percent the week before. A year ago, it was 6.02 percent, according to Freddie Mac.

When mortgage rates rise, they reduce homebuyers’ purchasing power. The average rate for a 30-year mortgage has been stuck above 6 percent since September 2022, the year mortgage rates began climbing from historic lows.

That’s helped kept sales of previously occupied U.S. homes stuck at around a 4 million annual pace going back to 2023. Historically, sales have typically hovered around 5.2 million a year.

While sales have been sluggish this year, they received a boost this fall as mortgage rates eased. The average rate for a 30-year home loan has stayed below 6.4 percent since early September. Last month, home sales accelerated to their fastest pace since February.

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 for pricing home loans.

The 10-year yield was at 4.10 percent at midday on Nov. 20. That’s down slightly from two weeks ago, but up from around 3.95 percent on Oct. 22.

Mortgage rates began declining this past summer ahead of the Federal Reserve’s decision in September to cut its main interest rate for the first time in a year amid signs the labor market was slowing. The Fed lowered its key interest rate again last month, although Fed Chair Jerome Powell cautioned that further rate cuts weren’t guaranteed.

Wall Street traders have reduced their bets that the Fed will cut its main interest rate at its next meeting in December, now giving it a roughly 44 percent probability, according to data from CME Group. That’s down from nearly 70 percent a few weeks ago, but better than the 30 percent chance before the release of the delayed September jobs report.

The central bank doesn’t set mortgage rates, and even when it cuts its short-term rates that doesn’t necessarily mean rates on home loans will necessarily decline.

Last fall, after the Fed cut its rate for the first time in more than four years, mortgage rates marched higher, eventually reaching just above 7 percent in January this year. At that time, the 10-year Treasury yield was climbing toward 5 percent.

Recent forecasts by economists at the National Association of Realtors and First American call for the average rate for a 30-year mortgage to drop to around 6 percent next year.

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WASHINGTON — U.S. long-term mortgage rates are little changed this week, remaining at historically low levels to prod prospective homebuyers.

Mortgage buyer Freddie Mac said Thursday the average rate for a 30-year fixed-rate mortgage ticked up to 3.74%, from 3.73% last week. The benchmark rate stood at 4.55% a year ago. The average rate on a 15-year mortgage was 3.19%, unchanged from last week.

The average rate for a five-year adjustable-rate mortgage rose to 3.45%, up from last week’s 3.37%.

Earlier this month, the Federal Reserve left its key short-term rate in a low range of 1.5% to 1.75% after having reduced it three times this year. With the Fed’s key rate likely to stay where it is, consumers looking to buy a home or car should continue to enjoy low borrowing costs.

For the year, the average rate for a 30-year fixed-rate mortgage was 3.9%, the fourth-lowest annual rate since they began tracking it in 1971, said Sam Khater, Freddie Mac’s chief economist.

“Heading into 2020, low mortgage rates and the improving economy will be the major drivers of the housing market with steady increases in home sales, construction and home prices,” Khater said.

Freddie Mac surveys lenders nationwide between Monday and Wednesday each week to compile its mortgage rate figures. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages remained at 0.7 point this week. The average fee for the 15-year mortgage also held at 0.7 point. The fee for the five-year adjustable-rate mortgage edged down to 0.3 point from 0.4 point.

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The Portland-area residential real estate market is seeing more and more of a rare sight in recent years: for-sale signs.

Inventory has begun to flow into the parched residential market. In June, the Portland-metro area had 2.1 months of inventory, according to RMLS, a listing service. That was the highest inventory for the month of June since 2014, and the highest inventory overall since January.

That should provide a degree of relief to prospective homebuyers. The residential market has been constrained by limited inventory caused by a constellation of factors, including a slow pace of homebuilding, a hot economy and fewer homeowners opting to migrate between states. The low inventory resulted in bidding wars, with desirable Portland-area properties often receiving multiple cash offers above the asking price.

This year’s more plentiful inventory so far hasn’t slowed the meteoric rise in home prices. The median sale price of Portland-area homes reached $417,900 in June, a new record and above $400,000 for a third consecutive month, according to RMLS data. Prices were up 7.2 percent from a year earlier.

“The market’s still doing well,” said Edward Petrossian, a RE/MAX agent and president of the Portland Metropolitan Association of Realtors. “Some adjustments have come in place for people who were expecting to have sales quicker. In general, prices have been holding pretty good.”

Homes sold in June spent an average of 37 days on the market, the same as a month prior, and down a day from June 2017. Closed and pending sales both fell compared to a year earlier.

Interest rates have moderated following a rising trend earlier this year. The national average on a 30-year fixed-rate mortgage was 4.52 percent last week, according to Freddie Mac.

“Interest rates are staying steady, so that’s giving a little more confidence to first-time homebuyers,” Petrossian said.

Freddie Mac warned more homes on the market may not be forthcoming.

“Unfortunately, don’t expect much relief from the tight inventory conditions plaguing many markets,” the federal agency stated in a news release. “As seen again last month, new home construction is not picking up to meet demand, and as a result, home prices are still rising at double the pace of income growth.”

Locally, look for sellers to become willing to make deals as the summer moves on, said Cheryle Clunes, principal broker with Summa Real Estate Executives.

“My experience is that in the month of July, we see definitely an increase in inventory, which RMLS data supports,” Clunes said. “We also see sellers become really motivated because they want to take advantage of families coming to move.”

Clunes said to watch for other seasonal trends, including a lull around when schools starts in August and September, followed by a busy late fall.

“In the fall, serious buyers stay on,” she said. “November seems to always be a really busy month.”

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