Mortgage rates rise after 6-week decline

An advertising sign for building land stands in front of a new home construction site in Northbrook, Ill., Wednesday, June 23, 2021. Mortgage rates fell for the fourth straight week, Thursday, July 22, undercut by worries that the surging delta coronavirus variant and the worsening pandemic in hotspots around the world could derail what has been a strong economic recovery.  (AP Photo/Nam Y. Huh)
An advertising sign for building land stands in front of a new home construction site in Northbrook, Ill., Wednesday, June 23, 2021. Mortgage rates fell for the fourth straight week, Thursday, July 22, undercut by worries that the surging delta coronavirus variant and the worsening pandemic in hotspots around the world could derail what has been a strong economic recovery. (AP Photo/Nam Y. Huh)

WASHINGTON -- Mortgage rates rose this week for the first time after six weeks of declines as signs point to a strengthening economic recovery.

Average rates for home loans remain historically low, however, at under 3%.

Mortgage buyer Freddie Mac reported Thursday that the average for the 30-year mortgage jumped to 2.87% from 2.77% last week. The benchmark rate, which reached a peak this year of 3.18% in April, stood at 2.96% a year ago.

The rate for a 15-year loan, a popular option among homeowners refinancing their mortgages, increased to 2.15% from 2.10%.

Uncertainty over the fast-spreading delta coronavirus variant and its potential effect on the economic recovery had been a backdrop in recent weeks suppressing mortgage rates.

The worry is that the resurgent virus could discourage people from going out and spending and trigger another round of shutdowns or other restrictions.

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