The 30-year fixed-rate mortgage (FRM) averaged 3.45% for the week of Jan. 13, up from 3.22% last week, according to Freddie Mac’s weekly Primary Mortgage Market Survey. A year ago at this time, the 30-year FRM averaged 2.79%.

“Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week,” says Sam Khater, Freddie Mac’s chief economist. “This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains. The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future.”

The 15-year fixed-rate mortgage averaged 2.62% with an average 0.7 point, up from last week when it averaged 2.43%. A year ago at this time, the 15-year FRM averaged 2.23%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.57% with an average 0.3 point, up from last week when it averaged 2.41%. A year ago at this time, the 5-year ARM averaged 3.12%.

"The impact of rising mortgage rates on the housing market is complex. Those currently house hunting will need to reassess their finances to make sure they can still afford the price point they are searching," says Ali Wolf, chief economist at Zonda. "Since rising mortgage rates impact the monthly payment, some shoppers will need to shift their search down in price to account for the change. Shoppers on the fence will find rising interest rates the jolt of energy they needed to get serious about buying today. That little push could make the housing market more competitive in the short run as more buyers try to compete for limited inventory. In the longer term, rising interest rates will weigh heavily on shoppers who are cost conscious, impacting affordability and hurting the chances for some to become homeowners."