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Mortgage rates moved higher this week, continuing an upward trend that has kept rates above 5% since mid-April.

The 30-year, fixed-rate mortgage averaged 5.30% in the week ending May 12, up from 5.27% the week before, according to Freddie Mac. It is the highest since 2009 and well above the 2.94% average from this time last year.

As mortgage rates rise and the cost of buying a home increases, some buyers are expected to drop out of the market. That, in turn, is likely to reduce competition in some markets, slowing the pace of home price growth.

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But an increase in mortgage applications last week showed buyers remain undeterred despite rising mortgage rates, according to the Mortgage Bankers Association.

Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third as compared to a year ago, said Sam Khater, Freddie Macs chief economist.

Several factors are contributing to this continued demand, he said, including the large wave of first-time homebuyers looking to buy. Plus, the spring is typically the peak buying season.

In the months ahead, we expect monetary policy and inflation to discourage many consumers, weakening purchase demand and decelerating home price growth, said Khater.