The average U.S. borrowing rate for housing loans rose to new highs in May. However, rates remain at historical lows when compared on a year on year basis since 1971.

According to the Boston Globe, the average 30 year mortgage loan rate went up to reach 3.51 percent from the 3.42 percent recorded in the early weeks of April. The average 15 year mortgage rates also climbed to 2.69 percent from the earlier 2.61 percent. While the five year adjustable mortgage rates reached 2.62 percent from 2.58 percent, the one year adjustable rate also peaked to 2.55 percent from 2.53 percent.

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Freddie Mac, the national mortgage financier attributes the rise to the steady economic conditions and growing builder confidence in the housing market, reports The Business Journal. Apparently, the percentage of home loans used to fund purchases outdid the percentage of loans used to refinance homes. About 47 percent of the total home loans were used for purchasing homes alone, which is up 27 percent from the figures of January.

Meanwhile, home prices have also been rising. A recent survey conducted by Core Logic, a real estate intelligence firm found that home prices rose for 13 straight months on a year over year basis. Prices increased across 46 states in America with 11 of them posting double digit increments, reports San Francisco Chronicle.

Housing affordability also remained steady for the first quarter of 2013 when compared to the same period a year ago. The National Association of Home Builders declared in its quarterly Housing Opportunity Index (HOI) that a total of 73.7 percent of existing and new homes were sold in the first quarter of 2013 to families that earned a median income of $64,400. Though the percentage is slightly lesser than the 74.9 percent recorded in the same period a year ago, the figure has never dropped below 70 since the last quarter of 2008. Housing affordability has remained exceptionally high in the past four years.

However, the housing market is still tackling high construction material prices and constrained supply, which is controlling the sector's take off.