Mortgage Rates Hit Highest Level in Over 5 Months

Rates are expected to remain above 6 percent next year, said a real estate expert.

A sale sign stands outside a home on the market along Nevada Avenue in the Old North End neighborhood of Colorado Springs, Colo., on June 22, 2023. David Zalubowski/AP Photo

Mortgage rates have shot back up after declining earlier this month following the Federal Reserve’s change to a slower, more cautious approach to interest rate cuts next year.

The average weekly rate on a 30-year fixed-rate mortgage was 6.85 percent for the week ending Dec. 25, the highest it’s been since the week ending July 10, according to data from Freddie Mac. After hitting a low of 6.6 percent for the week ending Dec. 11, the mortgage rate reversed course and has since been on an uptick.