Mortgage rates rose this week to the highest level in five months, ending the year slightly higher than where they started.

The latest from Freddie Mac Primary mortgage market survey, published on Thursday, showed that the average rate of reference 30-year fixed mortgage it jumped to 6.85%, up from last week’s reading of 6.72%. The average rate for a 30-year loan was 6.61% a year ago.

This week’s increase marked the highest level for the 30-year loan since mid-July, when the rate was 6.89 percent, according to data from Freddie Mac. The lowest rate this year was 6.08% at the end of September, while the maximum – 7.22% – was reached at the beginning of May.

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A “For Sale” sign on a house in Philadelphia on August 16, 2024. (Joe Lamberti/Bloomberg via Getty Images)

“Mortgage rates rose for the second week in a row, recovering from a decline from earlier this month,” said Sam Khater, chief economist at Freddie Mac. “Although a slight improvement sale of new and existing homes Encouragingly, the market continues to be plagued by an overwhelming housing shortage. A strong economy can help build momentum heading into the new year and potentially boost buying activity.”

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The average 15-year fixed mortgage rate rose to 5.92% from 5.84% last week. A year ago, the rate on the 15-year fixed note averaged 5.95%.