30-year mortgage average rises to 6.71%, highest level in about 13 months

WASHINGTON - The average U.S. 30-year fixed mortgage rate rose to 6.71% this week, the highest level in about 13 months, Freddie Mac said Thursday.

The Primary Mortgage Market Survey put the 30-year average at 6.71%, up from 6.66% a week earlier. The 15-year fixed average climbed to 6.04%. A year ago, the 30-year averaged 6.50%. Freddie Mac chief economist Sam Khater said purchase demand has stayed relatively stable even as rates drift higher, though elevated borrowing costs still stretch monthly budgets for many households.

Associated Press coverage tied the move in part to higher oil prices and market pressure linked to Iran tensions. Those forces helped push Treasury yields up. Mortgage rates typically track the 10-year Treasury note more than the Federal Reserve's short-term policy rate, so bond-market swings show up quickly in lender quotes.

For a buyer financing a few hundred thousand dollars, each quarter-point increase can add tens of dollars a month and thousands of dollars over the early years of a loan. Refinancing that made sense when rates dipped earlier becomes harder to justify when the new quote sits above the note already in place. Homeowners who locked lower rates in past years often stay put, which can keep listings thin even when would-be buyers are still shopping.

Builders and existing-home sellers watch the same weekly average because monthly payment math shapes traffic at open houses. A small rise in the national average does not move every local lender at the same speed, so shoppers still see different quotes on the same day.

Khater and housing analysts still point buyers to credit score, down payment and lender shopping as levers they control. Rate locks protect a quote for a set window once a purchase is under contract. Investors and retirees who hold mortgage-backed assets also watch the same Treasury path, because yields and home-loan pricing move together when markets reprice risk.