Mortgage rates inched up at the start of the year to the highest level in nearly six months, portending another tough year for the U.S. housing market. The 30-year mortgage rate remains at the highest level since July 2024.

Affordability hits a wall as rates climb--investors need a new strategy for navigating this challenging market

Home price growth continues to slow in the U.S., as high mortgage rates and persistent affordability challenges weigh on the housing market.

“Inching up to just shy of 7%, mortgage rates reached their highest point in nearly six months,” said Sam Khater, Freddie Mac’s chief economist. “Compared to this time last year, rates are elevated and the market’s affordability headwinds persist. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise.”

US mortgage rates climbed closer to 7%, threatening to squeeze buyers trying to crack into the housing market.Most Read from BloombergIs This Weird Dome the Future of Watching Sports?NYPD Seeking Gunmen After 10 People Wounded Outside Queens VenueDetroit’s Michigan Central Is the Building Revival Story of 2024Burned Out Parents Need Better Public SpacesA Commuting Resolution for 2025: Ride Your Local Subway or BusThe average on a 30-year mortgage rose to 6.

U.S. mortgage rates jumped to a six-month high this week, suggesting that a recent improvement in home sales could be temporary. The average rate on the popular 30-year fixed-rate mortgage increased to 6.

US mortgage rates climbed to an almost six-month high during the Christmas holiday week, suppressing applications for home purchases and severely undercutting refinancing activity.