The 12 basis-point weekly gain brought the average 30-year fixed rate to 6.44% during the week ended Oct. 17. 

That increase was significant but not as large as the previous week's, which was the largest since April. It also still leaves the most common loan type with a rate lower than a year ago, when it was 7.63%. on the week but was down from 6.92% a year earlier. 

Similarly, the 15-year fixed rate mortgage jumped 22 basis points to 5.63% on the week, but it was down from 6.92% in 2023.

"Compared to a year ago, rates are more than one percentage point lower and potential homebuyers can stand to benefit, especially by shopping around," Freddie Mac Chief economist Sam Khater said in a press release.

In line with Khater's read on the market, reports on loan application activity from the Mortgage Bankers Association show borrower interest has died down on a near-term basis as financing costs have climbed, but it's stronger than it was in 2023.

"Three consecutive weeks of increasing mortgage rates have slowed borrower demand for mortgages — especially for refinances," MBA President and CEO Bob Broeksmit said in a press statement.

"Mortgage applications fell for the third straight week, led by a 26 percent drop in refinance activity," he continued. "More rate volatility and application swings are likely in the coming weeks, but the good news is that applications are still running above year-ago levels when rates were much higher."

The current rate environment creates a mixed outlook for housing, said Orphe Divounguy, senior economist at Zillow Home Loans, in a press statement.

"A strong economy also means smaller and potentially fewer Federal Reserve rate cuts. On one hand a strong labor market is good for potential home buyers. On the other hand, it means mortgage rates aren't likely to decline," Divounguy said.