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The average long-term U.S. mortgage rate ticked up again this week, remaining at its highest level since July.

The benchmark 30-year fixed rate loan rate rose to 6.93 percent from 6.91 percent last week, according to mortgage giant Freddie Mac. It was at 6.66 percent a year ago. It has risen for four straight weeks.

The uptick in the cost of home loans reflects a rise in the bond yields that lenders use as a guide to price mortgages, specifically the yield on the U.S. 10-year Treasury. The yield on the 10-year Treasury has climbed from 3.62 percent in mid-September to 4.66 percent this week.

The increase is occurring with the price of homes rising steadily.

Elevated mortgage rates and rising home prices have kept homeownership out of reach of many would-be homebuyers. While sales of previously occupied U.S. homes rose in November for the second straight month, the housing market remains in a slump and on track for its worst year since 1995.

Rising rates in recent weeks have sent prospective homebuyers into retreat. According to the Mortgage Bankers Association, purchase mortgage applications for the week ending Jan. 3 decreased 7 percent from one week earlier on a seasonally adjusted basis. Applications were down 15 percent year-over-year, the trade group said.

“Mortgage application activity has stalled in recent weeks because of the four-week jump in rates to levels last seen in July 2024. Purchase applications are at 11-month lows as prospective buyers navigate a mixed market to start the year. While borrowing costs are higher, there’s the more welcome news of rising inventory levels in many areas of the country,” MBA President and CEO Bob Broeksmit said in a statement.

Interest rates have been climbing since the Federal Reserve signaled last month that it expects to raise its benchmark rate just twice this year, down from the four cuts it forecast in September.

The Fed is tapping the brakes on rate cuts because inflation remains stubbornly above the central bank’s 2 percent target, even though it’s fallen from its mid-2022 peak. Economists also worry that President-elect Donald Trump’s economic policies, notably his plan to vastly increase tariffs on imports, could fuel inflation.

The average rate on a 15-year fixed-rate mortgage, popular with homeowners seeking to refinance, ticked up to 6.14 percent, up from 6.13 percent and also the highest since July. It was at 5.87 percent a year ago, Freddie Mac said.

Banker & Tradesman staff writer James Sanna contributed to this report.