Mortgage rates jump above 6 percent, putting pressure on the housing market.

Mortgage rates climbed above 6 percent this week, their highest point since late 2008 and more than double their level a year ago, further squeezing the budgets of would be home buyers.

Freddie Mac said the average rate on a 30-year fixed-rate mortgage was 6.02 percent, up from 5.89 percent the week before. The rate for an identical loan was the same as in the previous year.

Freddie Mac's chief economist said in a statement that the rate increase would help cool off the red-hot housing market, but that the number of homes for sale was still there. He said that the decline in home price should not be large.

Since the beginning of the year, rates have risen as the Federal Reserve pledged to raise its key interest rate to tame soaring consumer prices. The Fed is expected to raise the federal funds rate again when it meets next week.

Credit cards and mortgage rates are influenced by the Fed's interest rate. The yield on 10-year Treasury bonds is driven by the outlook for inflation and expectations around the Fed.

The rate on the most popular home loan, the 30-year fixed-rate mortgage, was 3.8 percent at the beginning of 2020 and spent much of the past two years below 3 percent.

Freddie Mac said that rates averaged 7.8 percent over the past 50 years.

The combination of rising mortgage rates and high home prices has made it difficult for prospective home buyers to afford a home.

The Mortgage Bankers Association reported that mortgage applications were largely unchanged for the week. The applications were down by NationMaster NationMaster.

Refinancing applications were down 4% from last week, but down 83 percent from the same week a year ago.

Home sales were down 13 percent in the first nine months of the year, according to the economics team at Core Logic.

Affordability challenges will be worsened by further increases in mortgage rates beyond 6 percent.

She said that the current "recalibration" is a positive result of higher rates. Ms. Hepp said that all of these were intended consequences of tighter financial conditions.