Average 30-year fixed mortgage rates in the U.S. continue to climb after passing 7% earlier this month, according to market analysts.

Mortgage News Daily reported on April 16 that the rate reached 7.5%, the highest since mid-November 2023 when the level hit 7.58%.

Rates skyrocketed to 8% last October, according to Mortgage News Daily. The rate increase led to sales of new U.S. single-family homes falling more than expected as the higher mortgage rates "squeezed out buyers even as builders cut prices," Reuters reported.

Builders anticipated slower buyer traffic due to the 8% 30-year mortgage rates, but the market rebounded by the end of the year when rates dropped below 7%, according to Reuters.

Inflation driving mortgage rate increasing, economist says

From mid-December 2023 to mid-February, rates remained below 7%, Mortgage News Daily's data shows. The culprit behind rates increasing now is inflation, Danielle Hale, chief economist for Realtor.com, told CNBC.

Learn more: Best mortgage lenders

“By mid-February, a pick-up in inflation reset expectations, putting mortgage rates back on an upward trend, and more recent data and comments from Fed Chair (Jerome) Powell have only underscored inflation concerns,” according to Hale. “Sales data over the next few months is likely to reflect the impact of now-higher mortgage rates.”

Homebuyers continue to fill out mortgage applications despite higher rates, economist says

Regardless of higher rates, mortgage applications to buy homes increased by 3% last week (April 8-12) compared to the prior week (April 1-5), the Mortgage Bankers Association (MBA) said in a new release.

"Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down. Mortgage rates increased across the board, with the 30-year fixed rate at 7.13 percent (on April 17) – reaching its highest level since December 2023,” Joel Kan, MBA’s vice president and deputy chief economist, said in the release.

Kan said home buyers may have disregarded the higher rates and acted "in case the rates continue to rise," according to the release.

Mortgage rates will steadily increase due to competitive housing market, reports say

Home buying applications may dwindle as affordability weakens, despite more supply on the market than a year ago, which was still considered very low, CNBC reported. Homes are moving quicker as the competition increases, and people who want to wait until rates drop significantly may have to remain patient for quite a while, the outlet said.

“Recent economic data shows that the economy and job market remain strong, which is likely to keep mortgage rates at these elevated levels for the near future,” Bob Broeksmit, MBA’s president and CEO, told CNBC.