The 30-year fixed-rate mortgage averaged 5.81% in the week ending June 23, edging up from 5.78% the week before, according to Freddie Mac.
This time last year, rates averaged 3.02%, and the last time rates were this high was in the winter of 2008.
“Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales. However, in reality, many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.”
Despite the jumps, mortgage rates remain well below historical highs notched during the past 40 years — notably the record 18.63% average rate in October 1981.