The average rate on a 30-year fixed-rate loan was 7.09%, up from 6.96% last week and the highest since April 2002.
Recent increases in credit costs and home prices caused by severe inventory shortages have pushed housing affordability to its lowest level since 1984.
Sales of previously owned homes have declined as lack of offers, rising prices and worries about the economy have deterred many potential buyers.
Monthly payments on a $600,000 mortgage loan with the current average 30-year term would be about $4,028. That’s up from $2,601 early last year, before the Fed began raising the benchmark rate.