Average rate on a 30-year mortgage climbs for the first time since late May to just under 7%

AP Business Writer

LOS ANGELES (AP) — The average rate on a 30-year mortgage rose this week, pushing up borrowing costs on a home loan for the first time since late May. The rate rose to 6.95% from 6.86% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.81%. The uptick follows a four-week pullback in the average rate, which has mostly hovered around 7% this year. When rates rise they can add hundreds of dollars a month in costs for borrowers. The elevated mortgage rates have been a major drag on home sales, which remain in a three-year slump.