Fixed Rate Mortgages at 8-month high

Interest rates for 30-year, fixed-rate mortgages increased to an 8-month high of 6.32 percent with an average 0.7 point for the week ending June 12, Freddie Mac announced on Thursday. The rise has been largely attributed to growing concerns about inflation.

The mortgage averaged 6.74% a year ago and the last time the rate was higher was the week ending Oct. 25, when it averaged 6.33%. The 15-year fixed-rate mortgage also jumped, averaging 5.93% this week, compared with 5.65% last week.

"Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman (Ben) Bernanke and Vice Chair (Donald) Kohn, expressed concern over a threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

"This led some market participants to believe that the Fed will raise rates more aggressively over the year than previously thought," Nothaft added.