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Housing shows modest cooling as mortgage rates stay above 6.64%

Weekly indicators point to softer demand, with mortgage spreads at 1.97% after edging up from 1.95% the prior week.

Reported · Written up by our desk · Residential

HousingWire says mortgage rates spent most of last week above 6.64%, supported by Iran-related headlines that pushed oil risk higher and kept Federal Reserve rhetoric hawkish. The outlet framed the move as occurring near a key peak level for rates and Treasury yields.

Early demand signals showed some cooling, with pending sales essentially flat year over year and purchase applications posting a rare negative annual reading, according to HousingWire. The tracker described a slight slowdown from the prior trend as mortgage rates remained elevated.

The piece warned that housing has not performed well in prior periods when mortgage rates climb above 6.64%, and argued that if the renewed conflict escalates, Fed “hawks” could become more vocal. It also tied the current housing outlook to mortgage spreads, noting that spreads improved this year.

HousingWire cited mortgage spread history in the 1.60% to 1.80% range, and said spreads were at 1.97% last week, up from 1.95% the week before. It added that pending home sales data can be affected by holidays and short term fluctuations and may take 30 to 60 days to fully show up.

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