Debt ceiling impasse causes mortgage rates to climb.

Mortgage rates have risen for the second week in a row due to new economic growth estimates and the debt ceiling impasse, according to Freddie Mac. The average rate for a 30-year fixed-rate mortgage increased to 6.57% for the week ending May 25, up from last week's 6.39%. The second estimate for real gross domestic product in the first quarter of 2023 showed that the economy grew at an annual rate of 1.3%, an increase from the 1.1% initially calculated. However, a looming U.S. debt default, if Congress does not raise the spending limit by June, could impact mortgage rates negatively.