As of May 14, the average rate on a 30-year fixed-rate mortgage stood at 6.36%, just one basis point below the one-month high reached the previous week and retaining most of its rebound since the start of the year. Mortgage rates followed the move higher in long-dated Treasury yields as surging energy prices pushed inflation risks to the upside, raising the likelihood of a more hawkish Federal Reserve stance.
“While purchase demand is softening, it remains above this time last year. Recent data also show existing-home sales edging up modestly,” said Sam Khater, Freddie Mac’s chief economist.