the average mortgage rate this week rose to the highest level in months expectations surrounding inflation and economic growth are part of the explanation the average rate on a fixed 30year mortgage was 650 as of thursday according to freddie mac data released thursday it was the highest such rate since the week of nov 23 and represents an increase of 018 percentage point from the week prior “the economy continues to show strength and interest rates are repricing to account for the stronger than expected growth tight labor market and the threat of sticky inflation” sam khater freddie mac’s chief economist said in a statement last week the volume of home purchase loan applications fell 18 from the week prior the mortgage bankers association said—a sign that housing costs were cutting into buyer demand “mortgage applications for refinances and home purchases declined significantly last week with purchase activity decreasing to the lowest level since 1995” mortgage bankers association president and ceo bob broeksmit said in a thursday statement “high mortgage rates and elevated home prices continue to reduce affordability and are keeping many prospective buyers on the sidelines”