MCLEAN, VIRGINIA (VINnews) — The average rate on a 30-year U.S. mortgage climbed to 7.28% this week, its highest level in nearly three years, mortgage buyer Freddie Mac said Thursday.

The rate rose from 7.03% a week earlier. A year ago, the 30-year fixed average stood at 6.34%.

The 15-year fixed-rate mortgage also moved higher, averaging 6.60%, up from 6.42% last week and from 5.55% a year earlier.

The weekly survey tracks conventional, conforming purchase loans for borrowers who put 20% down and have strong credit. Results are released each Thursday and reflect applications submitted over the prior week.

“With mortgage rates on their current trajectory, the housing market continues to be supported by favorable economic conditions,” said Sam Khater, Freddie Mac’s chief economist.

The jump leaves borrowing costs well above the levels that fueled the pandemic-era homebuying surge. The 30-year average fell to a record low of 2.65% in January 2021, then rose sharply after the Federal Reserve began raising its benchmark rate to fight inflation. It topped 8% in late 2023 before easing, only to climb again through much of this year.

Higher rates raise monthly payments and can sideline buyers who already face elevated home prices. Sellers who locked in much lower rates in recent years have also been slow to list, keeping inventory tight in many markets.

Mortgage rates tend to track the yield on the 10-year Treasury note, which moves with inflation expectations, economic data and the outlook for Federal Reserve policy.