The average rate on a 30-year U.S. mortgage rose for a sixth straight week, returning to its highest level since early July.

The rate rose to 6.79 percent from 6.72 percent last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.5 percent.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners looking to refinance their loan at a lower rate, also rose this week. The average rate rose to 6% from 5.99% last week. A year ago, it averaged 6.81 percent, Freddie Mac said.

When mortgage rates rise, they can add hundreds of dollars a month in costs to borrowers, reducing homebuyers’ purchasing power at a time when home prices remain near all-time highs even as the housing market remains in a slump of sales. back in 2022.

Mortgage rates are influenced by several factors, including the yield on the 10-year U.S. Treasury bond, which lenders use as a guide for pricing home loans. Bond yields rose on upbeat reports on inflation and the economy.

Bond yields rose this week on expectations that President-elect Donald Trump would higher tariffs, lower tax rates and lighter regulations could lead to higher economic growth, inflation and US government debt.

The 10-year Treasury yield was 4.36% at midday Thursday. It was at 3.62% in mid-September.

The average rate on a 30-year home loan hasn’t been this high since July 11, when it was 6.89 percent. At the end of September, the average rate reached just as low 6.08% – the lowest level in the last two years — following the decision of the Federal Reserve to reduce the main interest rate for the first time in more than four years.

Although the central bank does not set mortgage rates, his policy pivot paved the way for mortgage rates to fall across the board.

“While we still expect mortgage rates to stabilize by the end of the year, they will likely be higher than markets originally expected before election week,” said Ralph McLaughlin, senior economist at Realtor.com.

The recent rise in mortgage rates has deterred some potential home buyers. Mortgage applications fell last week for a sixth straight week, falling 10.8% on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association.

Applications for loans to refinance a mortgage fell 19%, although they were still 48% higher than in the same week last year, when rates were higher.

“Rates and borrower demand are likely to remain volatile in the coming weeks as financial markets digest both the election results and the Fed’s future monetary policy decisions,” said MBA Managing Director Bob Broeksmit.