Mortgage Rates Soar Amidst Economic Uncertainty and Debt Ceiling Standoff.

Mortgage rates have risen for the second week in a row due to the uncertainty surrounding the debt-ceiling standoff. The 30-year fixed-rate mortgage averaged 6.57% in the week ending May 25, up from 6.39% the week before. Zillow projects that home buying costs could spike by 22% and mortgage rates could top 8% should the US default on its debt. Investors are also looking at the Federal Reserve's actions, as revealed in the minutes released from May's meeting. Home buyers remain sensitive to mortgage rate spikes, with mortgage applications dropping last week, according to the Mortgage Bankers Association.