US mortgage rates rise to 6.29%, highest in 14 years

Last week, rates averaged 6.02%. A year ago, home buyers enjoyed rates of 2.88%.

The Federal Reserve's aggressive monetary policy tightening, including a 75 basis point hike announced on Wednesday, has weakened the housing market considerably.

The Freddie Mac survey found that 15-year fixed rate mortgages averaged at 5.44% up from 5.21% the week before and 2.15% a year ago.

"The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011," said Sam Khater, Freddie Mac’s chief economist in a statement.

"Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels."

The 5-year Treasury indexed hybrid adjustable-rate mortgage averaged 4.97% in the latest survey up from 4.93% last week and 2.43% last week.