The elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have discouraged home shoppers, prolonging a national home sales slump that began in 2022.

After climbing to their most expensive level in more than seven months, 30-year mortgage rates held steady Tuesday. Rate movement was mixed for other loan types.

The average rate on a 30-year mortgage in the U.S. ticked up this week to slightly above 7%, the highest level in eight months.

The Fed is tapping the brakes on interest rate cuts because inflation remains stubbornly high. That's pushed mortgage rates higher.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.09% from 6.99%. Applications to refinance a home loan were 22% higher than the same week one year ago.