WASHINGTON, D.C.: The cost of borrowing for a home in the U.S. ticked up again this week, marking the second straight increase as homebuyers navigate an already challenging market.

The average rate on a 30-year fixed mortgage rose to 6.67 percent from 6.65 percent last week, mortgage buyer Freddie Mac reported this week. Though slightly higher, the current rate remains below the 6.87 percent average seen a year ago.

"The 30-year fixed-rate mortgage has stayed under 7 percent for nine consecutive weeks, which is helpful for potential buyers and sellers alike," said Sam Khater, Freddie Mac's chief economist.

Rates on 15-year fixed mortgages, often preferred by homeowners looking to refinance, also inched up to 5.83 percent from 5.8 percent last week. A year ago, the average was 6.21 percent.

Mortgage rates generally follow the movement of the 10-year Treasury yield, which has been fluctuating amid concerns over economic growth and the Trump administration's recent tariff decisions. The yield, which had approached 4.8 percent in mid-January, has since eased to around 4.23 percent as of March 20.

While tariffs could push inflation higher—potentially driving up mortgage rates—investors remain cautious about the long-term economic impact. The Federal Reserve has held its key interest rate steady this year after multiple cuts in 2024, signaling that it expects to lower rates twice more in 2025 despite persistent inflation concerns.

"In the near term, we expect mortgage rates to remain in a fairly narrow range, between 6.5 percent and seven percent, which should support the spring housing market," said Mike Fratantoni, chief economist at the Mortgage Bankers Association.

Higher mortgage rates have contributed to a prolonged slowdown in home sales, with last year marking the weakest level in nearly three decades. Sales of previously owned homes did see a modest 4.2 percent increase in February compared to the prior month but remained down 1.2 percent from a year ago, according to the National Association of Realtors.