A for sale sign stands outside a home in Niles, Illinois, Monday, July 1, 2024. The Labor Department on Wednesday, July 3, 2024, reported the number of people who applied for unemployment benefits last week. (AP Photo/Nam Y. Huh)
The average interest rate on a 30-year mortgage rose this week, raising the cost of mortgage borrowing for the first time since late May.
Mortgage buyer Freddie Mac said Wednesday that interest rates rose to 6.95 percent from 6.86 percent last week. The average rate a year ago was 6.81 percent.
The increase follows four weeks of declines in the average interest rate, which has mostly remained around 7% so far this year.
Borrowing costs for 15-year fixed-rate mortgages, popular among homeowners looking to refinance, also rose this week, with the average rate rising to 6.25% from 6.16% last week. The average rate a year ago was 6.24%, according to Freddie Mac.
Jobless claims increase slightly
The number of Americans who applied for unemployment benefits increased slightly last week and remains at historically low levels, but the total number of people receiving unemployment benefits continues to rise.
The Labor Department said Wednesday that jobless claims for the week ending June 29 rose by 4,000 to 238,000 from 234,000 the previous week. The data was released a day earlier than the usual Thursday release because of the Fourth of July holiday.
The total number of Americans receiving unemployment benefits increased for the ninth consecutive week to 1.86 million in the week ending June 22, the highest number since November 2021.
Economists say that while the number of new weekly applications for unemployment benefits is relatively low, some recipients are finding it harder to get new jobs, suggesting that demand for workers is weakening even as the economy remains strong.
“This data will be watched closely for signs of a more significant weakening in the labor market, which could have implications for Fed policy,” said Rubeela Farooqui, chief U.S. economist at High Frequency Economics.