Average rate on a US 30-year mortgage holds steady at 6.76%, not far from highest levels this year

By ALEX VEIGA AP Business Writer The average rate on a -year mortgage in the U S held steady this week not far from its highest levels this year but below where it was a year ago The rate stood at for the second week in a row mortgage buyer Freddie Mac mentioned Thursday A year ago the rate averaged Borrowing costs on -year fixed-rate mortgages popular with homeowners refinancing their home loans eased The average rate dropped to from last week It s down from a year ago Freddie Mac mentioned Mortgage rates are influenced by several factors including global demand for U S Treasurys the Federal Reserve s interest rate agenda decisions and bond region investors expectations about the market system and inflation After climbing to a just above in mid-January the average rate on a -year mortgage has remained above where it was just four weeks ago It then spiked above in the following two weeks and eased last week to The new swings in mortgage rates reflect volatility in the -year Treasury yield which lenders use as a guide to pricing home loans The yield which had mostly fallen after climbing to around in mid-January surged last month to amid a sell-off in establishment bonds triggered by investor anxiety over the Trump administration s agreement war The -year Treasury yield was at in midday trading Thursday up from late Wednesday Elevated mortgage rates and rising home prices remain affordability hurdles for a great number of would-be homebuyers It s why the spring homebuying season is off to a lackluster start Sales of previously occupied U S homes fell in March posting the largest monthly drop since November