U.S. mortgage costs moved slightly higher this week, adding pressure to homebuyers already facing an expensive housing market. The average rate on a 30-year fixed mortgage climbed to 6.78%, up from 6.71% the previous week, according to the latest data cited by Reuters.

The increase followed a cautious tone from the Federal Reserve, which signaled it is likely to move carefully on any additional interest-rate reductions. That stance has kept expectations for faster relief in borrowing costs in check, even as inflation and broader economic conditions remain central to policymakers’ decisions.

Higher mortgage rates can make monthly payments more difficult for buyers and can also cool demand in the housing market. For sellers, the jump may mean fewer qualified buyers and a slower pace of deals, especially in markets where affordability has already been strained.

For now, the latest move underscores how closely housing costs remain tied to the Fed’s next steps. Any sustained drop in mortgage rates will likely depend on clearer evidence that policymakers are ready to ease again.