US mortgage rates climbed even higher this week, hitting 7.49% and pushing homeownership further out of reach for would-be homebuyers.

It’s up from 7.31 percent the week before, according to Freddie Mac data released Thursday. There was a 6.66% rate on 30-year fixed-rate mortgages a year ago.

Inflation, the job market, and uncertainty about the Federal Reserve’s next move all contribute to the highest mortgage rates in a generation, said Freddie Mac’s chief economist Sam Khater. There is a decline in homebuyer demand as a result of this.”

The Federal Reserve has been fighting inflation through its historic inflation-curbing campaign, which has spiked mortgage rates. Rates may remain higher for longer due to stubborn inflation, according to the central bank. Mortgage rates have been pushed up by the rise in the 10-year Treasury yield.

The rising cost of financing a mortgage, combined with historically low inventories of homes for sale, has put home affordability at its lowest in decades. According to the National Association of Realtors, home sales are more than 20% behind last year this time of year.

Based on mortgage applications received by Freddie Mac from thousands of lenders across the country, the average mortgage rate is calculated. Survey participants must have excellent credit and put down 20% down.