Mortgage rates rose for the fourth time in five weeks to their highest levels since July.

The Mortgage Brokers Association reported that the 30-year fixed-rate mortgage rate rose to 6.73% for the week ending October 25. Since hitting a recent low in September, mortgage rates have increased nearly 0.6 percentage points.

The rise in borrowing costs comes as Treasury yields hit highest levels since Julythe 10-year Treasury bond exceeding 4.2% in recent days. The 10-year Treasury is one of the main factors that influence mortgage rates.

Mortgage demand depressed as rates rise

Due to rising interest rates, the demand for mortgages has remained relatively stable, the volume of mortgage applications slightly decreased compared to the previous week in the middle of the rise mortgage rates.

However, the recent surge in borrowing costs creates a reversal of recent home lending trends; refinancing activity is down after increasing in summer. Refinancings fell 6% from the previous week’s totals, although they remain much higher than a year ago, when mortgage rates were even higher.

At the same time, purchasing activity remained high, exceeding last week’s figures by 4% and 10% higher than the same period last year.

The increase in buying activity comes as more homes come up for sale. A recent Realtor.com study showed that the number of home listings increased by more than 11% to reach a three-year high.

“We continue to expect housing demand from younger buyers to support purchasing growth over the next several years as inventory for sale gradually eases,” said Joel Kan, vice president of MBA and deputy chief economist.