Mortgage rates hit 10-month high

From CNN Money...

Mortgage rates jumped to the highest level in 10 months after recent reports on unemployment, wage growth and labor costs fanned growing fears about a pickup in inflation, Freddie Mac said Thursday.

The average rate on 30-year fixed-rate loans climbed to 6.53 percent for the week ending June 7, from 6.42 percent the previous week. Last year at this time, 30-year mortgage rates averaged 6.62 percent. The rate is the highest since Aug. 10, 2006, when it averaged 6.55 percent.

The 30-year rate stood at 6.15 percent on May 10th, just before it turned sharply up.

Doug Duncan, chief economist for the Mortgage Bankers Association (MBA), expects mortgage rates to top out near 7 percent by the end of the year. Read More >>