Mortgage rates topped 7% this week, a key psychological threshold, in a sign of the US housing market’s unrelenting affordability challenges.

After climbing to their most expensive level in more than seven months, 30-year mortgage rates held steady Tuesday. Rate movement was mixed for other loan types.

The average rate on a 30-year fixed mortgage reached 7.04% for the week ending January 16 — the highest level since May.

The average 30-year fixed rate rose to 7.04% for the week ending Thursday, according to mortgage giant Freddie Mac. The average has now climbed for five straight weeks, and this week marks the first time since May the it has climbed above 7%. Last week, the average was 6.93%. Three years ago at this time, the average stood at 3.45%.

Higher interest rates add to problems with affordability that have hammered the housing market for the last two years. Prices have continued to climb despite slower sales volume, posting 17

The 30-year fixed rate mortgage continues to close on the 7% mark. With political uncertainty and the U.S. economy remaining strong, it could keep going up.

The elevated mortgage rates have discouraged home shoppers, prolonging a national home sales slump that began in 2022.

It's the first time since May 2024 that 30-year mortgage rates have hit that mark. High rates are adding to the affordability challenges many Americans are facing.

The interest rate on average fixed-rate 30-year home loan is more than 7%, the first time mortgage rates have been that high since May

After recently shooting up to the most expensive level since May, 30-year mortgage rates have fallen considerably the last two days. Most other loan types also saw declines.

The average rate on a 30-year mortgage in the U.S. ticked up this week to slightly above 7%, the highest level in eight months.