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

January is dominated by a change in presidential administrations, which dials up the uncertainty. "When things are more uncertain, rates tend to be more volatile," says Chen Zhao, head of economic research for real estate brokerage Redfin.

After surging to their highest level in nearly six months last week, 30-year mortgage rates declined. Most other loan types shed basis points as well.

“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.”

These are today's mortgage and refinance rates. Mortgage rates remain elevated as investors look ahead to how the economy could trend this year.