Mortgage rates rose for a fifth straight week as pre-election volatility continued to rattle the bond market.

The average 30-year fixed-rate mortgage was 6.72% in the week ending Wednesday, according to data from Freddie Mac, up from 6.54% a week earlier.

15-year mortgage rates also rose to 5.99% from 5.71% a week ago.

“With several potential turning points occurring next week, including the jobs report, the 2024 election and the Federal Reserve’s rate decision, we can expect mortgage rates to remain volatile,” Freddie Mac chief economist Sam Khater said in an interview statement . “While uncertainty remains, mortgage rates appear to be peaking and we do not expect them to reach the highs we saw earlier in the year.”

Average mortgage rates have been rising steadily after hitting a two-year low of 6.08% in late September. Mortgage rates are moving in part on expectations of future interest rate changes from the Fed, and a string of strong economic data has tempered traders' expectations of larger and more frequent interest rate cuts from the Federal Reserve.

Read more: Mortgage rates are still rising – is this a good time to buy a home?

Ten-year Treasury yields, which closely track mortgage rates, have also risen dramatically in recent weeks in response to the data and fears about the extremely close presidential election.

New economic data released this week will provide important clues about the direction of mortgage rates from now on. The latest reading of the Fed's preferred inflation gauge, released Thursday, showed prices rose 2.1% last year, close to the Fed's 2% target.

Traders say the chances are almost certain that the Fed will cut interest rates by 25 basis points at its meeting next week. However, they are less certain of further easing in December due to signs of stubborn inflation in some parts of the economy. In a measure that ignores fluctuating food and fuel costs, prices rose 2.7% annually in September.

Labor market data released on Friday will provide a final glimpse into the health of the economy before the Fed meets.

Higher mortgage rates have dampened refinance demand for now, with refinance applications down 5% week over week through Friday, according to the Mortgage Bankers Association. Purchase applications increased 5% compared to the previous week, which was shortened by a federal holiday.

Read more: Mortgage and refinance rates today, October 31, 2024: Rates increase

Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages and home insurance.

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