WASHINGTON – Long-term U.S. mortgage rates edged slightly lower this week, taking a pause after five straight weeks of increases.

Costs for would-be homebuyers have been climbing, and the key 30-year rate has been running at its highest levels in more than seven years. Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages ticked down to 4.71 per cent this week from 4.72 per cent last week. The average benchmark rate has risen from 3.85 per cent a year ago.

The average rate on 15-year, fixed-rate loans slipped to 4.15 per cent this week from 4.16 per cent last week.

The Federal Reserve signalled its confidence in the economy last week by raising a key interest rate for a third time this year, forecasting another rate hike before year’s end.

The strong economy and anticipation of more short-term rate hikes by the Fed are helping drive the increase in mortgage rates.

Against the backdrop of economic strength, interest rates on U.S. Treasury bonds have been rising as their prices have fallen. The yield on the key 10-year Treasury note climbed Thursday to 3.18 per cent, its highest level in more than seven years.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.

The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages fell to 0.4 point from 0.5 point last week. The fee on 15-year mortgages also declined to 0.4 point from 0.5 point.

The average rate for five-year adjustable-rate mortgages rose to 4.01 per cent from 3.97 per cent last week. The fee was unchanged at 0.3 point.