Mortgage rates for 30-year loans are now at their most expensive level since early May of last year. Most other new purchase loan types increased as well.

The average rate on the 30-year fixed mortgage rose this week to 6.86%, according to the latest Freddie Mac data released on Thursday. That is up from last week's reading of 6.81%.

Growing concern about the national debt impacted home borrowing rates this week. Mortgage rates track the benchmark 10-year Treasury yield, which climbed higher as bonds sold off