Mortgage rates jump to 6.81%, their highest level this year

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Mortgage rates jump to 6.81%, their highest level this year
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The 30-year fixed-rate mortgage averaged 6.81% in the week ending July 6 — up from 6.71% the week before, according to data from Freddie Mac. A year ago, the 30-year fixed rate was 5.30%.

The 30-year fixed-rate mortgage averaged 6.81% in the week ending July 6, up from 6.71% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.30%.

Rates ticked up last week, mirroring the trend of the yield on 10-year Treasuries, which are reacting to economic data that suggests stubborn inflation may be stuck at an elevated level. While this may put near-term upward pressure on interest rates, she said, including mortgage rates, she anticipates a gradual decrease that could bring rates close to 6% by the year's end.

Nearly 82% of home shoppers reported feeling "locked in" by their existing low-rate mortgage, according to Realtor.com, while around 1 in 7 homeowners without a selling plan cited their current low rate as their reason for remaining on the sidelines. Mortgage applications fell to their lowest level in a month last week as rates for most loan types increased, according to the Mortgage Bankers Association.

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