Average rate on 30-year mortgage climbs to 6.85%, highest since July

WASHINGTON, D.C.: The average 30-year mortgage rate in the U.S. has reached its highest level since mid-July, driven by rising bond yields that lenders use to set home loan prices.

Freddie Mac reported this week that the rate increased to 6.85 percent, up from 6.72 percent the previous week.

The 30-year mortgage rate stood at 6.61 percent a year ago. Though it dropped to a two-year low of 6.08 percent in