Workers build new homes at a development in Loveland, Colorado, Tuesday, June 25, 2024. Freddie Mac released this week's average U.S. mortgage interest rates Thursday, July 11, 2024. (AP Photo/David Zarbowski)
The average interest rate on a 30-year mortgage fell slightly this week, providing some relief to homebuyers facing record-high home prices.
Mortgage buyer Freddie Mac said Thursday that interest rates fell to 6.89% from 6.95% last week. The average was 6.96% a year ago.
The average interest rate has mostly hovered around 7% this year, more than double the rate just three years ago. Rising mortgage rates can cost borrowers hundreds of dollars more each month, deterring many from buying a home this year and bringing the U.S. housing recession into its third year.
“The 10-year Treasury yield fell this week following the June jobs report which showed a cooling in the labor market, and mortgage rates followed suit,” said Sam Carter, chief economist at Freddie Mac.
Costco raises membership fees
Bargain seekers will have to shell out an extra $5 to $10 a year as the popular warehouse store chain prepares to raise membership fees for the first time in seven years.
The Issaquah, Washington-based company said in its monthly sales report on Wednesday that it will increase entry fees to its more than 700 warehouses across the United States and Canada by 8 percent going forward.
The new rates, which go into effect Sept. 1, will raise annual fees for Costco's basic Gold Star membership to $65 from $60 and its premium Executive membership to $130 from $120. Annual membership fees, which have only begun to stabilize in recent months after years of extraordinarily high inflation, have remained constant since 2017.
In addition to the fee hike, Costco said its sales for the five weeks ending July 7 increased 7% from the same period last year to $24.48 billion.