The numbers: A strong U.S. economy and concerns about a potential U.S. default on its debt pushed mortgage rates higher this week.
The 30-year fixed-rate mortgage averaged 6.57% as of May 25, according to data released by Freddie Mac on Thursday.
It’s up 18 basis points from the previous week — one basis point is equal to one hundredth of a percentage point.
Last week, the 30-year was at 6.39%. Last year, the 30-year was averaging at 5.1%
The average rate on the 15-year mortgage increased to 5.97% from 5.75% last week. The 15-year was at 4.31% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 7.03% as of Thursday afternoon.
What Freddie Mac said: “Dampened affordability remains an issue for interested homebuyers and homeowners seem unwilling to lose their low rate and put their home on the market,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“If this predicament continues to limit supply, it could open up an opportunity for builders to help address the country’s housing shortage,” he added.
