Mortgage rates rose this week to the very best level since May 2024 during a volatile period for the bonds that closely track them.

The typical 30-year mortgage rate jumped to 7.04% through Wednesday, up from 6.93% per week earlier, after strong employment data pushed yields higher on the Treasury bonds which might be most closely linked to mortgage rates. Average 15-year mortgage rates also rose to six.27%, from 6.14%, based on Freddie Mac.

The newest jump in rates got here after December’s jobs report showed that the US added 256,000 jobs that month, excess of expected. The strong hiring data caused traders to reevaluate their expectations for Federal Reserve rate cuts this 12 months and sparked a steep rise in bond yields.

“The underlying strength of the economy is contributing to this increase in rates,” Sam Khater, Freddie Mac’s chief economist,” said in an announcement.

It’s the fifth straight week that mortgage rates have moved higher. But in the approaching days, prospective homebuyers might get some relief: Treasury yields have dropped sharply after a key inflation metric eased for the primary time since July. As of midday Thursday, the 10-year Treasury yielded 4.61%, down from as high as 4.79% on Tuesday.

Mortgage rates move based totally on expectations in regards to the path of benchmark rates of interest set by the Fed. Traders now see even odds that the Fed will cut rates of interest by May, up from a roughly 30% likelihood earlier this week, based on CME FedWatch data.

“There are more wild cards than normal this 12 months,” said Danielle Hale, chief economist at Realtor.com, adding that the brand new Congress and unknowns around President-elect Donald Trump’s return to office are likely weighing on rates. “I’m confident that a number of the uncertainty will calm down, and that may help mortgage rates settle a bit of bit.”