The latest Primary Mortgage Market Survey from Freddie Mac (OTCQB: FMCC) requires an upward view.
The 30-year fixed-rate mortgage averaged 6.79% as of June 1, up from last week when it averaged 6.57%. A year ago at this time, it averaged 5.09%.
The 15-year fixed-rate mortgage averaged 6.18%, up from last week when it averaged 5.97%. A year ago at this time, it averaged 4.32%.
“Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike,” said Sam Khater, Freddie Mac’s chief economist. “Although there has been a steady flow of purchase demand around rates in the low to mid 6% range, that demand is likely to weaken as rates approach 7%.”