Mortgage rates tick upward, signaling changing market dynamics

Mortgage rates saw a slight increase after weeks of decline, with the 30-year fixed rate at 6.72% and the 15-year rate at 5.82%. The June jobs report showed a strong labor market, reducing the likelihood of a July interest rate cut by the Federal Reserve.

While the Fed doesn’t directly control mortgage rates, they move based on expectations of rate cuts and the 10-year Treasury yield. Despite fluctuations, mortgage applications are steadily increasing, with a 2.7% rise from the previous week.

Home prices are falling in some regions, leading to a slight increase in pending home sales. However, high mortgage rates are hindering new home purchases, with new home sales 6.3% lower than a year ago and existing home sales down 0.7%.

Realtor.com’s Senior Economist Anthony Smith anticipates higher inventory levels due to reduced sales, creating a more buyer-friendly housing market. The process is expected to be gradual as economic uncertainty lingers.

Read more at Yahoo Finance: Mortgage rates move higher, ending six straight weeks of declines