Something Strange is Happening With Home Prices

The latest news out of the housing market isn’t good. Mortgage rates are soaring, and sales are dropping.

The one puzzler is what’s happening with prices.

The 30-year fixed-mortgage rate averaged 5.81% as of June 23, hitting a near-14-year-high, according to Freddie Mac. The rate rose from 5.78% last week, when it registered its biggest one-week surge since 1987. The rate was just 3.02% a year ago.

“Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

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