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Mortgage rates stay below 7%, but pending sales growth cools
Mortgage demand indicators were slightly positive year over year, with purchase apps rising just 0.2% and pending sales growth slowing as rates edged up with higher 10-year yields.
HousingWire reports mortgage spreads improved to 1.94%, helping keep mortgage rates below 7% even as the 10-year Treasury yield moved above forecast ranges.
The outlet said demand signals remain slightly positive year over year, but pending sales growth has cooled and purchase application growth slowed to 0.2%. It noted pending sales week-to-week results can be distorted by holidays and short-term fluctuations, and that pending data often takes 30 to 60 days to show up in sales.
HousingWire added that purchase applications typically see a seasonal week-to-week uptick after the July 4 holiday, with last week’s positive 6.0% week-to-week not unexpected. It said year-over-year growth is the part that matters most right now, and that it has remained minimal, indicating the housing market is slowing.
The outlet also flagged that mortgage rates have not breached 7% this year, but warned that if rates rise further or stay higher for longer, housing data would likely fade. It linked recent yield spikes to bond market sensitivity around the Iran conflict, noting that two yield surges above 4.60% coincided with conflict escalation.