U.S. average rates on long-term mortgages rose this week though they remain at historically low levels. The key 30-year loan nudged toward 3%.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year home loan increased to 2.99% from 2.96% last week. By contrast, the rate averaged 3.55% a year ago.

The average rate on the 15-year fixed-rate mortgage rose to 2.54% from 2.46% from last week.

Homebuying demand continues as one of few bright spots in the pandemic-struck economy, especially for prospective buyers considering a first-time purchase. The government reported Tuesday that construction of new homes surged 22.6% in July as homebuilders bounced back from a lull induced by the coronavirus pandemic.

Housing starts have now risen three straight months after plunging in March and April as the virus outbreak paralyzed the U.S. economy. Last month�s pace of construction was 23.4% above that in July 2019. The big gains came from the construction of apartments and condominiums, which soared 56.7%. But single-family home construction ticked up, too, by 8.2%.

In the latest indication of how halting and slow the economy�s recovery has been, the government�s latest weekly report on unemployment claims showed Thursday that the number of workers seeking benefits crept back above 1 million last week after two weeks of declines. Many businesses and consumers remain paralyzed by uncertainty and restricted by lockdowns.

(AP)