According to Fannie Mae’s Economic and Strategic Report, the 30-year fixed mortgage rate increased more than 110 basis points from May to June. Recent data shows continued improvement with May’s existing home sales jumping to its highest level in six years. Also, new home sales were up in May to the highest level since July 2008.

Pending home sales jumped in May to the highest level in over six years, suggesting that existing homes were strong in the second quarter, as reported by Mortgage News Daily. As rates and prices rise, some homebuyers may refrain from the market while others may jump in.

Fannie Mae says it expects mortgage rates to continue to rise gradually, averaging 4.7% in the fourth quarter, about 40 basis points higher than seen a month ago.