The average rate on the 30-year fixed mortgage rose 10 basis points to 6.28% on June 14

WASHINGTON–Mortgage rates continue to rise, having jumped significantly even prior to the Federal Reserve’s meeting this week at which it announced it was pushing up rates.

The average rate on the 30-year fixed mortgage rose 10 basis points to 6.28% on June 14, according to Mortgage News Daily, after a 33 basis point jump on June 13. The rate was 5.55% one week ago.

“Rising rates have caused a sharp turnaround in the housing market. Mortgage demand has plummeted,” CNBC reported. “Home sales have fallen for six straight months, according to the National Association of Realtors. Rising rates have so far done little to chill the red-hot home prices fueled by historically strong, pandemic-driven demand and record low supply.”

The increase in rates is the highest since July of 2013.

"The difference back then was that the Fed had simply decided it was time to finally begin unwinding some of the easy policies put into place after the financial crisis," wrote Matthew Graham, chief operating officer of MND, CNBC stated. "This time around, the Fed is in panic mode about runaway inflation.”

Crushing Affordability

In January, the average rate on the 30-year was  around 3.25%. The rising rates combined with home price increases are crushing affordability, the news outlet stated, noting for instance, on a $400,000 home, with a 20% down payment, the monthly mortgage payment went from $1,399 at the start of January to $1,976 today, a difference of $577.