Mortgage rates are climbing again, presenting challenges for home buyers as the financial markets digest economic data indicating U.S. economic strength, while speculating on the impact of the upcoming presidential election. Recently, the average 30-year fixed-rate mortgage rose 72 basis points just this October, now averaging 6.92%, according to Mortgage News Daily. This rate means a $2,700 monthly payment for a median-priced home at $404,500.

The rising rates are driven by fears that the strong U.S. labor market or election results could cause rates to increase further, says Samir Dedhia, CEO of One Real Mortgage. The October employment report, anticipated on November 1, is expected to shape rate trends significantly. Recent stronger-than-expected employment figures have unsettled investors, affecting expectations for future inflation control, according to Hannah Jones, economic analyst at Realtor.com.

Although mortgage rates aren’t directly controlled by the Fed, the 30-year rate often follows the 10-year Treasury yield, which has recently risen. Despite the Fed’s interest rate cuts, market sentiment around further cuts remains cautious. However, rates could generally ease in the coming months, with Fannie Mae predicting a potential drop below 6% by 2025.