The 30-year fixed-rate mortgage was back above 3% this week, and economists believe rates will continue to increase over the next few months.

“The combination of rising inflation and consumer spending is driving mortgage rates higher,” says Sam Khater, Freddie Mac’s chief economist. “Shoppers looking to buy a home are fueling a strong demand while ongoing inventory shortages are not improving in the presence of higher home prices. This reality illustrates the challenging situation facing the housing market.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 18:

*30-year fixed-rate mortgages: averaged 3.10%, with an average 0.7 point, rising from last week’s 2.98% average. Last year at this time, they averaged 2.72%.

*15-year fixed-rate mortgages: averaged 2.39%, with an average 0.6 point, increasing from last week’s 2.27% average. A year ago, they averaged 2.28%.

Source: Freddie Mac and “Instant Reaction: Mortgage Rates, November 18, 2021,” National Association of REALTORS® Economists’ Outlook blog