Mortgage rates rose in the first week of 2023 as mortgage applications fell to multi-decade lows.

Thirty-year fixed-rate mortgages averaged 6.48 percent as of Jan. 5, according to Freddie Mac data released Thursday.

That's up six basis points from the previous week, with one basis point equaling one percent.

Last week, the 30-year rate was 6.42 percent.

Last year, the 30-year rate averaged 3.22 percent.

Rates are still well below a month ago, when the 30-year average was above 7 percent.

The average rate for the 15-year mortgage rebounded to 5.73 percent.

Freddie Mac noted that if rates fall, the outlook for the mortgage market in 2023 will be bright.

Freddie Mac Chief Economist Sam Khater said in a statement that homebuyers are waiting for rates to fall more sharply, and that a strong job market and a huge demographic tailwind of millennial renters will support the purchase market when rates fall.

He added. In addition, if rates continue to fall, borrowers who purchased last year will have the opportunity to refinance and get lower rates.

The Mortgage Bankers Association reported Wednesday that demand for mortgages has fallen to the lowest level since 1996.

Khater expects inflationary pressures in the U.S. to ease and interest rates to fall in 2023.

The yield on the 10-year Treasury note fell below 3.75 percent in Thursday's afternoon trading session.