The current average mortgage rate on a 30-year fixed mortgage is 7.34%, compared to 7.29% a week earlier, according to Curinos. For borrowers who want a shorter mortgage, the average rate on a 15-year fixed mortgage is 6.

As we step into the new year, with the presidential inauguration on the horizon, many are wondering about the direction of interest rates.

Mortgage rates are starting 2025 at the highest they've been since last summer on expectations that the Fed will keep rates higher longer.

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.

There aren't likely to be any dramatic dips in mortgage rates in the near future. New year, new housing market? Not exactly. In early 2025, affordability remains a major challenge for prospective homebuyers,