Rates rose to their highest level in seven years in the past week. For the week ending May 17, Freddie Mac announced that 30-year fixed rates increased to 4.61% from 4.55% the week before. The average for 15-year loans rose to 4.08% and the average for five-year adjustables was up to 3.82%. A year ago, 30-year fixed rates averaged 4.02%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher rates on home loans over the past week. Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher rates have not caused much of a ripple in the strong demand levels for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching five percent could begin to hit the psyche of some prospective buyers.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.