T4K3.news

Mortgage applications drop 10% as rates increase

Mortgage demand fell 10% last week, driven by rising rates and economic concerns.

July 16, 2025 at 11:00 AM

Weekly mortgage demand plummets 10%, as rates and economic concerns rise

Mortgage demand dropped 10% due to rising rates and economic concerns over tariffs.

Mortgage demand decreases sharply as economic fears rise

Mortgage demand fell by 10% last week due to rising interest rates and worries over the economy. The Mortgage Bankers Association reported that the average interest rate for a 30-year fixed-rate mortgage increased from 6.77% to 6.82%. Joel Kan, vice president at the MBA, indicated that higher Treasury yields and concerns about tariffs influenced this rise. Additionally, applications for home purchases decreased by 12%, reflecting the slowest pace since May. Meanwhile, refinancing applications dropped by 7%, despite being up 25% compared to last year.

Key Takeaways

✔️

Mortgage applications fell 10% last week amid higher interest rates

✔️

Interest rates for 30-year fixed mortgages rose to 6.82%

✔️

Concerns over tariffs are affecting consumer confidence in housing

✔️

Refinancing applications are down despite a year-on-year increase

"Mortgage rates rose after two weeks of declines, contributing to slower application activity."

This statement from Joel Kan explains how recent trends in rates impact mortgage applications.

"Refinance applications dipped because of higher rates, partly reversing previous gains."

Kan highlights that higher rates are affecting refinancing decisions and overall market activity.

The drop in mortgage demand highlights the delicate balance of rising rates and economic instability. As mortgage applications decline, it signals a potential slowdown in the housing market. Consumers and investors alike are feeling the pressure of higher rates and tariffs, prompting caution. This situation could lead to longer-term changes in the housing landscape, impacting buyers, sellers, and the economy overall.

Highlights

High rates are causing a sharp decline in mortgage applications
Economic fears push mortgage demand down significantly
Tariffs are playing a larger role in the housing market's slowdown
Refinancing activity is declining amid rising interest rates

Economic concerns impact housing market

Rising interest rates and fears over tariffs are creating a cautious atmosphere for buyers and investors. This could lead to a slowdown in housing activity and potential long-term implications for the market.

The future of the housing market now hinges on economic stability and consumer confidence.

🏷️

mortgages housingmarket economicpolicy tariffs interest rates finance economy real estate

Enjoyed this? Let your friends know!