The average rate on a 30-year fixed mortgage rose by 7 basis points from the previous week to 6.30% as of April 30, marking the first weekly increase in a month, according to data from Freddie Mac. The move tracked a rebound in long-dated Treasury yields, as surging energy prices pushed inflation risks to the upside and raised the prospect of a more hawkish Federal Reserve stance.
“As rates had modestly declined the last few weeks, purchase demand has accelerated, with purchase applications now more than 20% above a year ago. It is clear that purchase demand continues to hold up as prospective buyers respond to both slightly lower rates and a greater supply of homes on the market than in recent years,” said Sam Khater, Freddie Mac’s chief economist.