Today, the mortgage interest rate on a 30-year fixed mortgage is 7.43%, according to Curinos. On a 15-year fixed mortgage, the average rate is 6.61%, and the average rate on a 30-year jumbo mortgage is 7.

Most economists were expecting mortgage rates to fall over the course of the coming year. But rates have risen steadily over the last month, inching back up to 7% — and they’re expected to move even higher in the coming weeks.

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.

Mortgage rates may decline somewhat in 2025 but the Federal Reserve currently expects interest rate cuts to be limited. Where mortgage costs trend from here will depend in part on unemployment and inflation data.

Despite Fed interest rates continuing to decrease through the end of last year, mortgage rates have increased because the Federal Reserve does not directly control mortgage rates,