The average rate on a 30-year U.S. mortgage increased slightly for the third week in a row, reaching 6.26%. This is close to the low point for the year, but higher than last year’s average of 6.84%.

Borrowing costs for 15-year fixed-rate mortgages also rose, reaching 5.54% compared to last week’s 5.49%. This is up from 6.02% a year ago, affecting homeowners looking to refinance.

Mortgage rates have been above 6% since September 2022, impacting homebuyers’ purchasing power. Sales of previously occupied U.S. homes have remained stagnant at around 4 million annually, well below the historical average of 5.2 million.

Despite sluggish sales, recent easing of mortgage rates has led to a boost in home sales this fall. The 30-year home loan rate has stayed below 6.4% since early September, leading to the fastest pace of sales since February.

Mortgage rates are influenced by various factors, including Federal Reserve interest rate decisions and bond market expectations. They typically follow the trajectory of the 10-year Treasury yield, which was at 4.10% on Thursday.

Mortgage rates began declining this summer ahead of the Federal Reserve’s decision in September to cut its main interest rate. The 10-year yield was around 3.95% on Oct. 22, slightly lower than the current 4.10%.

Wall Street traders have reduced their bets on a Fed rate cut in December, now giving it a 44% probability. This is down from nearly 70% a couple of weeks ago, but higher than the 30% chance before the September jobs report was released.

The Fed’s interest rate decisions do not directly impact mortgage rates. After the Fed’s rate cut last fall, mortgage rates actually increased, reaching just above 7% in January this year.

Economists predict the average rate on a 30-year mortgage will drop to around 6% next year, offering potential relief for homebuyers and refinancers.

Read more at Yahoo Finance: Average US long-term mortgage rate rises to 6.26%, the third straight increase