Mortgage rates have risen for the fourth week in a row, with the average rate on the 30-year fixed mortgage reaching 6.94% compared to 6.90% last week and 6.65% a year ago, as reported by Freddie Mac's latest Primary Mortgage Market Survey. Conversely, the average rate on the 15-year fixed mortgage slightly decreased to 6.26% from last week's 6.29%, but was higher than the rate of 5.89% a year ago.

Freddie Mac chief economist Sam Khater noted that the increase in rates has hindered the momentum of homebuyers as the market approaches the typically busy spring season. The combination of higher rates and elevated home prices continues to present affordability challenges, pushing potential buyers to the sidelines.

The housing market, which usually sees an uptick in activity during the spring after a slower winter, has been impacted by the surge in rates and soaring home prices, causing many prospective buyers and sellers to reconsider their plans. The Mortgage Bankers Association reported a 5% decrease in mortgage applications for home purchases from last week, with a notable 12% drop compared to the same period last year.

As the housing demand stalls due to the escalating rates, the market is facing significant challenges that may prolong the slowdown in activity, impacting both buyers and sellers.