Mortgage rates jumped this week, mortgage buyer Freddie Mac said Thursday.
Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage climbed to 6.52% from last week’s reading of 6.48%.
The average rate on a 30-year loan was 6.84% a year ago.
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“The 30-year fixed-rate mortgage averaged 6.52% this week,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“Stronger employment momentum has helped existing home sales reach a five-month high. Importantly, we’re seeing homebuyers look past the short-term rate fluctuations and actively enter the market, signaling renewed confidence in homeownership opportunities.”
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The average rate on a 15-year fixed mortgage rose to 5.84% from last week’s reading of 5.79%.
The U.S. added 172,000 jobs in May, beating forecasts, while unemployment held steady at 4.3%. The strong report may lower hopes for near-term interest rate cuts, according to Realtor.com economist Jiyai Xu.
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The Labor Department also reported that the Consumer Price Index rose 4.2% year over year in May, the highest since April 2023.
Core inflation, excluding food and energy, rose 2.9%, according to Realtor.com.
“What began as a question of when the Fed would cut rates has quietly shifted,” Xu said in a statement. “Ongoing global tensions and rising energy prices have prompted some to wonder whether a rate increase may be back on the table.”
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