For the third consecutive week, mortgage rates climbed, driven again by an increase in bond yields, according to Freddie Mac's (FRE) Primary Mortgage Market Survey.
30-year fixed-rate mortgages increased from 5.29% to an average 5.59% with an average 0.7 point for the week ending June 11, marking the highest rate recorded since the end of November, 2008.
The 15-year fixed-rate mortgage averaged 5.06 this week, up from last week's 4.79% average, but still well below the 5.93% average last year at this time.
Freddie Mac's vice president and chief economist says higher mortgage rates are slowing refinancing activity; however, the demand for home purchases hasn't eased.
Adjustable-rate mortgages are also on the rise, now sitting above five percent. Five-year ARMs averaged 5.17% this week, compared to last week's 4.85% average. One-year ARMs rose from 4.81% to 5.04% this week.
A little over two weeks ago, lots of borrowers could get mortgages at less than 5 percent by paying a discount point -- prepaid interest equal to 1 percent of the loan amount. Now some borrowers have to pay discount points just to get below 6 percent, explains Bankrate's Holden Lewis.
For all those borrowers banking on rates to fall even farther than they did during April and May, may have missed their window of opportunity.
Bankrate.com, which conducts a separate rates survey, posted findings similar to Freddie Mac's, showing a sharp uptick in rates. The benchmark 30-year fixed-rate mortgage rose 30 basis points to 5.95%, according to Bankrate.com, while the 15-year fixed-rate rose 31 basis points to 5.37%.
Write to Kelly Curran.