Mortgage rates spike as home prices hit new record

The national home price average crossed $400,000 for the first time

Mortgage rates resumed their upward climb along with home prices. 

Rates for a 30-year fixed mortgage rose to 5.22% from 4.99%, according to Freddie Mac's weekly data. 

"Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market," said Sam Khater, Freddie Mac’s chief economist. "Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer."

Mortgage Rates, 30-year

  (Freddie Mac)

Separately, the national median single-family existing-home price rose 14.2% annually to $413,500, surpassing $400,000 for the first time, according to the National Association of Realtors. 

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Eighty percent of U.S. metro markets saw double-digit annual price gains. 

"Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers," said NAR chief economist Lawrence Yun in the report.