The Associated Press

The average long-term U.S. mortgage rate came off its lowest level in 3 1/2 years this week, as bond yields marched higher following a spike in oil prices due to the war with Iran.

The benchmark 30-year fixed rate mortgage rate ticked up to 6% from 5.98% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.63%.

The modest increase ends a three-week slide in the average rate, which has been hovering around 6% this year. Last week’s average rate marked the first time it dropped below 6% going back to September 2022.

Meanwhile, borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, fell this week. That average rate slipped to 5.43% from 5.44% last week.