Mortgage rates bounce back up after falling for two weeks

Mortgage rates bounced back up this week after falling for two weeks in a row.

The 30-year fixed-rate mortgage averaged 6.39% in the week ending May 18, up from 6.35% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.25%.

Economic crosscurrents have kept rates within a 10-basis point range over the last several weeks, said Sam Khater, Freddie Mac’s chief economist.

“While affordability remains a hurdle, homebuyers are getting used to current rates and continue to pursue homeownership,” said Khater.

Mortgage rates topped 5% for the first time since 2011 a little more than a year ago, and have remained over 5% for all but one week during the past year. Since then they have gone as high as 7.08%, last reached in November.

Over the last month, rates have gone up and down, but have stayed under 6.5%.

“Mortgage rates have remained in the roughly 6% to 7% range for the last eight months and will likely remain in this range until incoming economic data makes the economy’s path forward more clear,” said Hannah Jones, Realtor.com economic data analyst. “Buyer demand has been sensitive to the ebb and flow of mortgage rates, but near-peak home prices and elevated inflation mean many would-be buyers are still waiting on the sidelines.”

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.

This is a developing story and will be updated.