The average rate on a 30-year U.S. mortgage rose to 6.75%, contributing to a sales slump in the housing market. Borrowing costs on 15-year fixed-rate mortgages also increased. This trend has discouraged homebuyers, with sales of previously owned homes remaining sluggish. Economists expect rates to remain stable between 6% and 7%.

Yields have risen this month as traders anticipate a positive June jobs report, potentially influencing the Fed’s interest rate decisions. President Trump’s comments on firing the Federal Reserve chair briefly impacted bond yields. Mortgage rates have fluctuated this year, with the current rate significantly higher than the low in April.

The rise in mortgage rates has dampened demand, with mortgage applications dropping by 10%. Economists predict a slow housing market for the remainder of the year, as elevated rates make it challenging for buyers to qualify for loans. Homeowners with lower mortgage rates are also hesitant to sell, further impacting the market’s activity.

Read more at Yahoo Finance: Average long-term US mortgage rate rises to 6.75%, second straight uptick