US mortgage rates rise for the first time in 6 weeks, jumping above 3%

• The rate on the popular 30-year fixed-rate mortgage increased to 3.01%, according to Freddie Mac data released Thursday.
• It's the first time in six weeks that US mortgage rates have increased — the rates have been held down by low US Treasury bond yields and near-zero interest rates.
• Mortgage rates remain near a historic low, and have driven a strong rebound in the housing market. Still, economic uncertainty could derail the housing recovery going forward.
• Read more on Business Insider.

US mortgage rates increased for the first time in six weeks, and surpassed the key 3% level, but still remain near record lows.

The rate on the popular 30-year fixed-rate mortgage increased to 3.01%, according to Freddie Mac data released Thursday. Last week, the rate fell to 2.98%, the lowest in Freddie Mac's records dating from 1971. In June, the mortgage rate on the 30-year fell below 3% for the first time ever.

Mortgage rates, which loosely follow the yield on the 10-year US Treasury bond, have plummeted since March when the coronavirus pandemic first slammed global markets. When that happened, investors flocked to the safety of government bonds, pushing yields down inverse to price.

The historically low rates have helped fuel a strong rebound in the housing market, one of the bright spots in the recovery from the coronavirus pandemic recession. In June, US existing home sales surged nearly 21%, the highest monthly gain ever, according to data released Wednesday from the National Association of Realtors.

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"While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop," said Sam Khater, Freddie Mac's chief economist of economic and housing research, in a statement. "In the short-term, this means the demand will continue on the back of near record low mortgage rates."

Still, there are potential risks ahead for the housing rebound as new coronavirus cases spike in the US, forcing some states to pause or roll back reopening plans.

"The most recent consumer spending data has been pointing to slow growth since mid-June," said Khater. "The concern is that the pause in economic activity will cause unemployment to remain elevated which will lead to longer-term labor market distress."

On Thursday, US weekly jobless claims increased for the first time since March, adding to concerns about stubbornly high unemployment.