Freddie Mac’s measure of mortgage interest rates in the U.S. crossed 7% for the first time since May.

The average for 30-year loans rose to 7.04%, up from 6.93% last week, according to a statement Thursday.

Borrowing costs have climbed steadily in recent weeks, adding to the affordability crunch for homebuyers. Cold weather in parts of the U.S. and wildfires in California are pressuring demand even further. In the four weeks ended Jan. 12, contracts to buy previously owned homes fell 8.4%, the biggest year-over-year decrease since October 2023, according to Redfin Corp.

For buyers with a $600,000 loan, the monthly mortgage payment is now $4,008. That’s higher than the $3,628 monthly payment for buyers who locked in rates when the average hit a two-year low at the end of September.

Strong jobs data released Friday pushed yields on 10-year Treasuries higher, but those yields fell earlier this week after a softer-than-expected inflation print stoked speculation that the Federal Reserve may cut sooner than previously thought.