U.S. Mortgage Rates Hit 7 Year High, Approaching 5 Percent in May

Based on Freddie Mac's latest Primary Mortgage Market Survey, after plateauing in recent weeks, U.S. mortgage rates reversed course and reached a new high last seen eight years ago. Sam Khater, Freddie Mac's chief economist, says the 30-year fixed mortgage rate edged up to 4.61 percent, which matches the highest level since May 19, 2011. "Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week," he said. "Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season."