Average 30-year U.S. mortgage rate rises to 6.49%

The average 30-year fixed mortgage rate rose to 6.49% from 6.47% the previous week, Freddie Mac said Thursday. One year earlier the same rate stood at 6.77%. The 15-year fixed-rate mortgage, commonly used for refinancing, increased to 5.84% from 5.81% last week. A year ago that rate was 5.89%.

Mortgage rates track the 10-year Treasury yield, which stood at 4.38% at midday Thursday after reaching above 4.5% earlier in the week. The yield was 4.46% one week earlier and 3.97% in late February. Rates have remained near 6.5% for six weeks after rising since late February when conflict between the U.S. and Iran began and pushed oil prices higher.

Recent negotiations between the two countries have eased some pressure on yields. The Federal Reserve has signaled it could raise its short-term rate at least once before year-end, a move that bond investors watch for its potential effect on longer-term yields.

Existing-home sales fell in the first quarter compared with a year earlier and remain near a 4-million annual pace, below the historic average of roughly 5.2 million. Sales were flat in April before rising in May to the fastest pace since December.