Average U.S. 30-year fixed mortgage rates moved up this week to 6.78%, according to Freddie Mac, adding fresh pressure to homebuyers already facing a costly housing market. The increase comes as investors look for clearer signals from the Federal Reserve on when, or whether, it will begin cutting rates.

The latest move underscores how closely mortgage costs remain tied to expectations around central bank policy. Even small shifts in Treasury yields and rate-cut forecasts can quickly affect borrowing costs for home purchases and refinancing.

For prospective buyers, the higher rate means monthly payments stay elevated, limiting affordability in many markets. Sellers and lenders are also watching for signs that a sustained drop in rates could revive demand later this year.

Analysts say the next moves in the housing market will depend on economic data and the Fed’s guidance in the weeks ahead. Until then, mortgage rates are likely to remain sensitive to every new signal from policymakers and financial markets.