The average long-term U.S. mortgage rate climbed this week to its highest level since November, according to weekly data compiled by mortgage buyer Freddie Mac.
The rate on the 30-year fixed mortgage rose to 6.79% this week from 6.57% a week ago. One year ago, it averaged 5.09%.
"Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike," said Sam Khater, Freddie Mac’s chief economist. "Although there has been a steady flow of purchase demand around rates in the low to mid six percent range, that demand is likely to weaken as rates approach seven percent."
Meanwhile, the average rate on a 15-year fixed mortgage rose to 6.18% this week from 5.97% a week ago. At this time last year, the 15-year fixed-rate mortgage averaged 4.32%.