Mortgage rates in the U.S. rose for the first time this month.

The average for a 30-year loan was 3 per cent, up from 2.94 per cent last week, Freddie Mac data showed Thursday. It was the first time since mid-April that the rate was at or above 3 per cent.

Rates have see-sawed over the past few weeks as investors process economic data and look for signs of inflation triggered by the country’s recovery from the pandemic. There’s a growing consensus that the Federal Reserve may have to consider tapering its purchases of Treasuries and mortgage bonds if growth continues at its current pace, according to George Ratiu, senior economist at

Cheap loans have fueled a rally in home purchases and given Americans more buying power even as bidding wars push up prices. The 30-year average hit a record low of 2.65 per cent in early January. It climbed above 3 per cent this year amid optimism about the rebound, then dipped below that benchmark, where it remained for four weeks.