Mortgage rates continued their upward climb this week, further hindering demand in the housing market amid elevated rates and high home prices.

Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage surged to 6.44% from last week's reading of 6.32%. The average rate on a 30-year loan was 7.63% a year ago.

"The 30-year fixed-rate mortgage increased for the third consecutive week, moving closer to 6.5%," said Sam Khater, Freddie Mac’s chief economist. 

"In general, higher rates reflect the strength in the economy that is supportive of the housing market," Khater said. "But notably, as compared to a year ago, rates are more than one percentage point lower and potential homebuyers can stand to benefit, especially by shopping around for the best quote as rates can vary widely between mortgage lenders."

Many would-be buyers and sellers are holding out to see if rates fall further. Currently, about 80% of mortgage holders have a rate below 5%, according to a Zillow survey.

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The average rate on the 15-year fixed mortgage also rose to 5.63% from 5.41% last week. One year ago, the rate on the 15-year fixed note averaged 6.92%.