Average U.S. mortgage rates moved higher for a second straight week, adding to pressure on would-be homebuyers already facing elevated borrowing costs. Freddie Mac said the average rate on a 30-year fixed mortgage climbed to 6.95%, up from the prior week.

The latest increase comes as the housing market continues to lose momentum. Higher financing costs are keeping some buyers on the sidelines, while affordability remains strained for many households. That pullback has helped cool demand even as home prices in many areas remain stubbornly high.

Borrowers have seen rates fluctuate over the past several months, but they have stayed well above the levels that fueled the pandemic-era housing boom. With monthly payments still expensive, many buyers are delaying purchases, seeking smaller homes, or turning to rental markets instead.

Economists and market watchers say the outlook depends largely on inflation, Federal Reserve policy, and bond yields. For now, the latest uptick reinforces a housing market in which affordability, not inventory alone, is driving the slowdown.