For the first time in six weeks, mortgage rates are trending up.
The average 30-year fixed mortgage rate was 6.72% through Wednesday, up from 6.67% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was 5.82%, up from 5.80% last week.
The June jobs report showed that the labor market remains strong and unemployment is ticking down slightly. Those factors point to a lower likelihood of a July interest rate cut by the Federal Reserve.
The Fed does not directly control mortgage rates, but rates move based on expectations about future rate cuts. Additionally, the 10-year Treasury yield, which mortgage rates closely follow, has begun to see an uptick.
Read more: 2025 housing market: Is it a good time to buy a house?
While this week saw a slight increase in mortgage rates, they have remained within the 6% to 7% range throughout 2025.
In spite of the fluctuations, mortgage applications are still steadily on the rise. According to a weekly Mortgage Bankers Association survey, last week mortgage applications were nearly 2.7% higher than the previous week.
Learn more: Mortgage rates in every state
“We are seeing home purchase and refinance applications respond to the downward trajectory in rates, increasing by 25% and 56%, respectively, compared to the same time last year,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
As home prices in some regions of the country are declining, pending home sales have also seen a slight uptick, according to the National Association of Realtors. In May, pending home sales increased 0.8% over the previous month.
On a wider scale, however, high mortgage rates are inhibiting new home purchases: New home sales are 6.3% lower compared to one year ago. Existing home sales are also down 0.7% from last year.
“The reduction in sales is leading to slightly higher inventory levels and will help create a more buyer-friendly housing market, but the process is expected to be a gradual one as economic uncertainty persists,” Realtor.com Senior Economist Anthony Smith said in a statement.
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