The 30-year, fixed-rate mortgage averaged 5.23% in the week ending June 9, up from 5.09% the week before, according to Freddie Mac. The rate remains well above the 2.96% average from this time last year.
“After little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data,” said Sam Khater, Freddie Mac’s chief economist.
The rates moved up in anticipation of Friday’s inflation data and mirrored the rebound in the 10-year Treasury, which crested at 3% mid-week, said George Ratiu, Realtor.com’s senior economist and manager of economic research.
“Investors have their eyes on the Consumer Price Index, expecting to see continued gains but at a moderating pace,” he said, adding that the data will be an important measure for the Federal Reserve at its meeting next week.
Buyers of median-priced homes are looking at a monthly mortgage payment that is 53% higher than it was a year ago, adding an extra $670 to their monthly expenses.
“The economic outlook is highly dependent on the well-being of the American consumer,” said Ratiu. “For many Americans looking for affordable pockets of housing, mid-sized cities remain a viable alternative, especially as the number of homes for sale has been on the rise, bringing fresh options.”