The average rate on a 30-year fixed mortgage climbed to 6.52% this week, up from 6.48% last week but below the 6.84% level a year ago.
Freddie Mac says stronger job growth is helping fuel a rebound in housing activity, with existing-home sales reaching a five-month high.
Mortgage application activity jumped 10.8% in the latest week, suggesting buyers and refinancers are becoming more comfortable with rates remaining above 6%.
The average rate on a 30-year fixed-rate mortgage rose to 6.52% this week, marking the latest increase in a year that has seen borrowing costs remain stubbornly elevated despite expectations for lower rates.
According to Freddie Mac's Primary Mortgage Market Survey, the benchmark rate increased from 6.48% a week earlier, although it remains below the 6.84% average recorded at this time last year. The average rate on a 15-year fixed mortgage also increased, rising to 5.84% from 5.79% the previous week.
Despite the uptick, housing economists say buyers are showing signs of adapting to the current rate environment.
"The 30-year fixed-rate mortgage averaged 6.52% this week," Freddie Mac Chief Economist Sam Khater said in a statement. He noted that stronger employment growth has helped push existing-home sales to a five-month high and that prospective buyers appear increasingly willing to move forward with purchases despite short-term fluctuations in mortgage rates.
Highest level of the year
The latest survey places mortgage rates just below their highest level of 2026. Freddie Mac's data show rates have largely remained in a narrow range this year after briefly dipping below 6% earlier in 2026.
Higher Treasury yields have been a key factor keeping mortgage costs elevated. Mortgage rates generally track movements in the 10-year Treasury note, which has moved higher in recent weeks amid concerns about inflation and a resilient labor market. Those economic conditions have reduced expectations that the Federal Reserve will cut interest rates in the near term.
Home sales are increasing
Even so, recent mortgage demand data suggest buyers are returning to the market. The Mortgage Bankers Association reported that mortgage applications increased 10.8% in the week ending June 5, with both purchase and refinance activity posting gains. Analysts attributed part of the increase to borrowers taking advantage of brief declines in rates during the week.
Earlier this week the National Association of Realtors reported that existing-home sales rose 3.2% in May from both April and a year earlier, reaching the strongest pace since December. Sales rose even though the median existing-home price climbed to a record $429,300.
The increase in applications could be an encouraging sign for the housing market, which has struggled with affordability challenges since mortgage rates began rising sharply in 2022. Existing-home sales remain below historical norms, but recent activity suggests some buyers are no longer waiting for a significant drop in borrowing costs before entering the market.
For prospective homebuyers, however, affordability remains a challenge. While today's mortgage rates are considerably lower than the nearly 8% levels reached in late 2023, they remain well above the sub-3% rates many homeowners secured during the pandemic-era refinancing boom. Most forecasts now anticipate mortgage rates will remain above 6% through the remainder of 2026.