U.S. mortgage rates rose again this week, adding pressure to a housing market already showing signs of cooling. The average 30-year fixed rate reached 6.92%, its highest level in nearly two months, according to the latest market data.

The increase comes as investors adjust expectations for the Federal Reserve, which has signaled that fewer rate cuts may be ahead than many had anticipated. That shift has pushed borrowing costs higher and made it harder for prospective buyers to afford monthly payments.

Higher mortgage rates tend to reduce buying power, especially in markets where home prices remain elevated. For many households, the latest move is another setback in a market where affordability has already been strained by years of rising prices and limited supply.

Sellers and builders may also feel the effects if demand weakens further. With financing costs still elevated, the housing slowdown could deepen if rates remain near current levels in the weeks ahead.