M
ortgage rates are creeping up, but they're still relatively low compared to a year ago. The 30-year fixed-rate mortgage averaged 6.44% this week, according to Freddie Mac. This marks the third consecutive week of rate increases. As a result, mortgage applications for home purchases dropped 7% last week, with rates reaching their highest level since August.

    Despite higher mortgage rates, Sam Khater, Freddie Mac's chief economist, believes it's not necessarily bad news for the economy. "Higher rates reflect the strength in the economy that supports the housing market," he says. However, buyers remain cautious due to high home prices and limited affordability.

    Buyers are advised to shop around for mortgage rates, as they can vary significantly between lenders. Freddie Mac reports the following national averages for mortgage rates: 30-year fixed-rate mortgages averaged 6.44%, up from last week's average of 6.32%. A year ago, 30-year rates averaged 7.63%. 15-year fixed-rate mortgages averaged 5.63%, rising from last week's average of 5.41% and down from last year's average of 6.92%.