The average long-term mortgage rate rose this week to 6.34% from 6.3% last week, mortgage buyer Freddie Mac said Thursday

The average rate on a 30-year U.S. mortgage rose for the second straight week following a series of declines that had brought down home borrowing costs to their lowest level in almost a year.

The average long-term mortgage rate rose this week to 6.34% from 6.3% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.12%.

Mortgage rates are influenced by several factors, from the U.S. central bank’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 to pricing home loans.

The 10-year yield was at 4.10% at midday Thursday, down from 4.19% the same time last week. Much of that decline has come in the past few days, driven by discouraging reports on the U.S. economy, particularly the job market.

In late July, mortgage rates started dropping in the lead-up to the central bank’s decision last month to cut its main interest rate for the first time in a year amid growing concern over the U.S. job market.

However, central bank Chair Jerome Powell has since signalled a cautious approach to future interest rate cuts. That’s in sharp contrast with other members of the Fed’s rate-setting committee.

The housing market has been in a slump since 2022, when mortgage rates began jumping from historic lows. Sales of previously occupied U.S. homes dipped last year to their lowest level in around 30 years. So far this year, sales are running below where they were at this time in 2024.