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. It averaged 6.91% as of Jan. 2, according to data released by Freddie Mac on Thursday.

The average interest rate on a 30-year mortgage rose to 6.91% as of Thursday, up from 6.85% a week earlier, according to Freddie Mac data. A measure from the Mortgage Bankers Association advanced 8 basis points to 6.97% in the period ended Dec. 27, a nearly six-month high. A year ago at this time, the 30-year FRM averaged 6.62%.

Mortgage rates touched their highest point since July, while the market's affordability headwinds continued to persist, the latest Freddie Mac Primary Mortgage Survey showed. 30-year fixed-rate mortgages averaged 6.

After dipping for two days, 30-year mortgage rates edged higher, again nearing their highest level since early July. Rate movement was mixed for other loan types.

Mortgage rates rose again last week, leaving them near 7% to start the year. The average 30-year fixed-rate mortgage rose to 6.91% in the week through Wednesday, from 6.85% as of Dec. 26, according to Freddie Mac data.

Freddie Mac’s benchmark rate for a 30-year mortgage increased to 6.91% for the week ending January 2, 2025. With this week’s increase, the 30-year rate is now more than 0.25 percentage points higher than a year ago.