Mortgage rates reach highest level since 2008

Rate for a 30-year mortgage nears 6%

U.S. mortgage rates climbed to their highest level in 14 years this week as the housing market prepares for the Federal Reserve to implement further interest rate hikes to combat sky-high inflation.

Freddie Mac said Thursday that its latest Primary Mortgage Market Survey shows the average rate for the benchmark 30-year fixed mortgage rose again this week to 5.89%, up from last week's reading of 5.66%.

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A for sale sign is posted in front of a home for sale in San Rafael, California. ((Photo by Justin Sullivan/Getty Images) / Getty Images)

At this time last year, 30-year fixed-rate products averaged 2.88%.

The rate for a 15-year fixed note also surged, averaging 5.16% after coming in at 4.98% last week. That is more than double the average rate at this time last year when 15-year products were at 2.19%.

"Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation," said Sam Khater, Freddie Mac’s chief economist. "Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate."

This is a developing story and will be updated. The Associated Press contributed to this report.