The 30-year fixed-rate mortgage had a weekly average of more than 6.7% for the first time in over a year, Freddie Mac reported Thursday.

The 6.71% rate was up five basis points from the prior week and represented a gain of 21 bps from the same week last year.

The popular 30-year loan instrument is now up 73 bps from the weekly period ending Feb. 26, when rates fell below 6% for the first time since 2022. That came two days before the United States and Israel commenced the still ongoing war with Iran, which spiked oil prices and Treasury yields that steer mortgage borrowing rates.

The 15-year fixed rate also climbed six basis points to 6.04% this week, which is 44 bps higher than a year ago and 60 bps above Feb. 26 levels.

Despite the recent hit to affordability, Freddie Mac Chief Economist Sam Khater noted in a press release that “purchase demand has remained relatively stable, indicating steady interest from buyers adapting to evolving market conditions.”

Data from the Mortgage Bankers Association (MBA) shows overall mortgage demand inched up 0.8% for the week ending Aug. 28, with seasonally adjusted purchase applications rising 2% but refinance volumes falling 1%.

Bob Broeksmit, the association’s president and CEO, pointed to an uptick in housing inventory as a driver of the increased purchase activity.

“While affordability remains a challenge, the increased supply in many local markets is helping support homebuying activity,” the MBA leader noted in emailed commentary.

But Broeksmit tempered expectations for lower interest rates anytime soon.

“We expect mortgage rates to remain around 6.7% for the foreseeable future, with incoming economic data critical to their path,” he said.