The 30-year fixed-rate mortgage averaged 5.51% in the week ending July 14, up from 5.3% the week before, according to Freddie Mac. That is significantly higher than this time last year when it was 2.88%.

Rates rose sharply at the start of the year, hitting a high of 5.81% in mid-June. But since then, economic concerns have pushed them lower, with rates last week notching the biggest one-week dip since 2008.

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Mortgage rates continue to be volatile as the US economy slows and the Federal Reserve raises interest rates in order to cool inflation, said Sam Khater, Freddie Mac's chief economist.

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"With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans," said Khater.