The US housing market experienced a week of heightened caution. Mortgage rates rose to a 10-month high around 6.6%, weighing on purchase demand.

Why It Matters

The rate increase, coupled with geopolitical uncertainty, led to a 7% drop in purchase applications. Refinance activity edged up 4%. Nationally, sellers outnumber buyers by a record 630,000, though prices stayed resilient.

What the Experts Say

Freddie Mac’s survey showed inventory continuing to rise nationally, with regional contrasts sharp, Northern New Jersey remains a sellers’ market. June housing starts jumped to 1.427 million, up 19% month-over-month. Dallas Fed President Lorie Logan noted inflation is cooling but not defeated, keeping pressure on longer-term rates.

The Bottom Line

The week reflected a cautious summer market with elevated rates, strong construction data, and steady prices. The US market continues to grapple with affordability challenges, with 2026 home-price growth forecasts downgraded to +1.2%.