Mortgage rates jumped more than a quarter point this week and remain at the highest level in 14 years, offering no relief to sidelined homebuyers.

The average rate on the 30-year fixed mortgage increased to 6.29% from 6.02% last week, according to Freddie Mac, marking the highest point since the last week of October 2008. Rates are more than 3 percentage points higher than at the start of the year.

Rapidly rising rates this year have only made what was an unaffordable housing market for many even worse, forcing those would-be buyers to pause their purchasing plans. Those who remain, though, are finding it easier to negotiate with sellers than when the year began.

"For buyers watching their take-home pay shrink due to higher prices, and shopping budgets diminish due to rising rates, today’s housing market remains highly unaffordable," George Ratiu, Realtor.com's manager of economic research, said in an email to press. "In many locations, price cuts may be the only viable option to restore housing balance and affordability."

Why did mortgage rates increase?

The jump in the 30-year rate came as the Federal Reserve reiterated its steadfast commitment to rein in runaway prices on Wednesday after it increased its short-term benchmark rate by three-quarters of a point as expected.

The yield on the 10-year Treasury, which fixed mortgage rates tend to track, jumped to the highest level since 2011 on those inflation-fighting expectations. Mortgage rates soon followed.

The Fed also started to reduce the amount of mortgage-backed securities it holds on its balance sheet this month, according to Ratiu.

"These actions will cause mortgage rates to continue rising until inflation shows signs of more significant moderation," Ratiu wrote.

Many buyers retreat

Since mortgage rates started their rapid ascent in earnest in March, buyers have been flowing out the exits.

The volume of mortgage applications for purchases is down 30% year over year, according to the latest data from the Mortgage Bankers Association, even though the activity registered a small seasonally adjusted 1% uptick week over week.