Fixed mortgage rates this week resumed their recent upward trend, with lenders offering 30-year home loans to solid borrowers at an average of 4.51%, according to Freddie Mac.
The average rate, up from 4.29% last week and 3.56% a year ago, is more than a percentage point above last fall's record low of 3.31%.
Rising rates could send more prospective buyers into the housing market in the short term while also making it harder to afford a home. Rising rates also are likely to cut into mortgage refinancing activity.
The average rate on 15-year fixed-rate loans rose to 3.53% this week from 3.39%. A year ago, the 15-year average rate was 2.86%. The record low for the 15-year mortgage, which has been popular with refinancers, is 2.56%, set in early May, Freddie Mac said.