By Dave Sebastian
Mortgage rates surpassed 3% in the last week, according to Freddie Mac's latest survey.
For the week ended Thursday, the rate on a 30-day fixed rate mortgage averaged 3.05%, up from 2.99% last week and its highest point since April. The rate averaged 2.81% a year ago.
Mortgage rates tend to move in the same direction as U.S. Treasurys, which rise when bond prices fall.
"As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing," said Sam Khater, Freddie Mac's chief economist. "Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers."
Rates on 15-year fixed-rate mortgages averaged 2.3%, up from 2.23% in the previous week. The rate averaged 2.35% a year earlier, according to Freddie Mac.
Five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, on average stood at 2.55%, down from 2.52% last week and lower than the 2.9% rate a year earlier.
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