An article summarized by Yahoo Finance:
Mortgage rates moved higher this week as stronger-than-expected economic data increased expectations that the Federal Reserve could raise interest rates again later this year. According to Freddie Mac, the average 30-year fixed mortgage rate climbed to 6.52%, up from 6.48% the previous week. The increase followed a surprisingly strong jobs report showing the U.S. added 172,000 jobs in May, as well as inflation data showing consumer prices rose 4.2% year-over-year, driven largely by higher energy costs linked to the Iran conflict.
The stronger economic data has caused markets to abandon hopes for near-term rate cuts, with many investors now expecting the Fed to raise rates at least once before the end of the year. While the Fed does not directly set mortgage rates, mortgage borrowing costs are heavily influenced by expectations for future interest-rate policy. As Treasury yields rose, mortgage rates followed suit, reinforcing a "higher-for-longer" environment for borrowing costs.
Despite mortgage rates hovering around 6.5% for the past month, housing activity showed some resilience in May as buyers and sellers remained active during the traditional spring home-buying season. Current national average mortgage rates remain elevated, with 30-year fixed loans around 6.4% and 15-year fixed loans near 5.9%. The higher rates continue to challenge affordability for many buyers, though demand has not completely stalled as consumers adjust to a housing market where borrowing costs are likely to remain elevated for the foreseeable future.
