Mortgage Rates Hit 11-week High

Fannie Mae on Thursday announced that 30-year fixed rate mortgages averaged 6.08 percent this week. It's jumped to its highest level since mid-March amid growing concerns about inflation. At the same point last year, the 30-year loan averaged 6.42 percent.

"Mortgage rates drifted up this week over market concerns that the Federal Reserve Board may raise short term rates later this year," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

"Indeed," Nothaft added, "market inflation expectations increased over the last few weeks and the federal funds futures market now has a 25 basis point rate hike priced in by the end of the year."

According to the Freddie Mac survey, other types of mortgage rates showed increases this week.

Rates on 15-year fixed rate mortgages rose to 5.66 percent, up from 5.55 percent last week.

The five-year adjustable-rate mortgage edged up to 5.62 percent, compared to 5.61 percent last week. However, the rate on a one-year adjustable-rate mortgage edged down slightly, dropping to 5.22 percent, compared to 5.24 percent last week.