Mortgage rates have increased to 6.82%, driven by concerns over tariffs and the economy, which led to a 12% drop in home buying applications last week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less rose from 6.77%. Points remained unchanged at 0.62.
The housing market has seen inventory climb since the start of the year, but buyer demand is retreating as home prices soften. Potential sellers are also starting to pull back. Jumbo rates were lower than conventional rates for the third straight week, as some lenders may be positioning themselves for growth in balance sheet lending.
Refinance applications dropped 7% last week and were 25% higher than the same week one year ago. VA refinances, which had previously increased, fell by 22%. Mortgage rates are expected to continue moving higher, despite a slightly hotter-than-expected inflation read.
Source: https://www.cnbc.com/2025/07/16/weekly-mortgage-demand-plummets-10percent-as-rates-and-economic-concerns-rise.html