Fixed mortgage rates moved higher for the second consecutive week, with the average conforming 30-year fixed mortgage rate now at 6.21 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.35 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing inched higher to 5.9 percent, and the average jumbo 30-year fixed rate to 7.26 percent. Adjustable mortgage rates were mixed, with the average one-year ARM remaining at 6.17 percent, and the average 5/1 ARM dropping to 6.21 percent.

Mortgage rates moved higher after two reports showed inflation could be an issue. In particular, both the Producer Price Index and Consumer Price Index showed larger than expected increases, even after excluding volatile energy costs. The news was enough to push bond yields and mortgage rates higher. After all, inflation is like poison to bond investors as it erodes the value of the fixed payments they receive. Mortgage rates are closely related to yields on long-term government bonds.

Fixed rate mortgages are currently the most attractive option for borrowers. Five months ago, the average 30-year fixed mortgage rate was 6.82 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,306.52. Now that the average conforming 30-year fixed rate is 6.21 percent, the same $200,000 loan carries a monthly payment of $1,226.24.