Mortgage rates rose this week, continuing an upward trend that has pushed rates more than two percentage points higher this year.
The 30-year fixed-rate mortgage averaged 5.27% in the week ending May 5, up from 5.10% the week before, according to Freddie Mac. It is the highest since 2009 and well above the 2.96% average from this time last year.
“Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s chief economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.”
Hoping to curb inflation, the Federal Reserve announced earlier this week that it would raise the federal funds rate by half a percentage point, the biggest jump since 2000.
