Mortgage rates wander higher but remain below 3%

After the holiday weekend, mortgage rates drifted up but still stayed under 3%.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average grew to 2.99% with an average 0.6 point. (Points are fees paid to a lender equal to 1% of the loan amount. They are in addition to the interest rate.) It was 2.95% a week ago and 3.18% a year ago.

Freddie Mac, the federally chartered mortgage investor, aggregates rates from around 80 lenders across the country to come up with weekly national averages. It uses rates for high-quality borrowers with strong credit scores and large down payments. Because of the criteria, these rates are not available to every borrower.

The survey is based on home purchase mortgages, which means rates for refinances may be higher. The price adjustment for refinance transactions that went into effect in December is adding to the cost. The adjustment, which applies to all Fannie Mae and Freddie Mac refinances, is 0.5% of the loan amount. That works out to $1,500 on a $300,000 loan.

The 15-year fixed-rate average held steady at 2.27% with an average 0.6 point. It was 2.62% a year ago. The five-year adjustable rate average rose to 2.64% with an average 0.2 point. It was 2.59% a week ago and 3.10% a year ago.

"Mortgage rates trended up slightly this week, as markets digested inflation data and set their sights on the upcoming jobs report," said Matthew Speakman, a Zillow economist. "Data released [last week] showed that the Federal Reserve's preferred measure of inflation increased from April to May by more than it had in any month since 2001. The market's initial reaction to the news was more muted than this type of report would normally warrant - something that may indicate investors believe that the rising price pressures are temporary and largely due to pandemic-driven...