The average rate on a 30-year mortgage fell slightly this week, providing modest relief for home shoppers facing record-high home prices.

The rate fell to 6.89% from 6.95% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.96%.

The average rate has mostly hovered around 7% this year — more than double what it was just three years ago. The elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have put off many home shoppers this year, extending the nation’s housing slump into its third year.

“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week and mortgage rates followed suit,” said Sam Khater, Freddie Mac’s chief economist.

Costco ups membership fees

Costco bargain hunters are going to have to pay an additional $5 to $10 annually as the popular warehouse chain prepares to raise its membership fees for the first time in seven years.

The Issaquah, Washington, company disclosed the forthcoming 8% increase in the fee to gain entry into its more than 700 warehouses in the U.S. and Canada as part of a monthly sales report Wednesday.

The new fees, set to take effect Sept. 1, will boost the price of Costco’s basic Gold Star membership from $60 to $65 annually, while the cost for the premium Executive membership will rise from $120 to $130. The annual fee had remained the same since 2017, despite several years of unusually high inflation rates that finally have been cooling down in recent months.

Besides the fee increase, Costco disclosed its sales for the five-week period ending July 7 rose by 7% from the same time last year to $24.48 billion.