US mortgage rates nudge higher, reaching 6.11% for 30-year loans

[WASHINGTON] Mortgage rates in the US rose for a third week, adding slightly to housing costs with the key spring sales season ahead.

The average for 30-year, fixed loans was 6.11 per cent, up marginally from 6.1 per cent last week, data from Freddie Mac showed on Thursday (Feb 5). 

Housing demand has remained sluggish even as rates dropped from nearly 7 per cent a year ago. But the real test will come over the next couple of months as the market’s busiest season begins. If all goes well, borrowing costs at or below 6 per cent will lure in more buyers and sellers, helping to thaw the frozen market. 

Rates are far more appealing than they were a year ago, said Jake Krimmel, senior economist with Realtor.com.

“They’re way lower,” Krimmel said. “That means we’re going to see a lot more prospective homebuyers.” BLOOMBERG