With the Federal Reserve's July meeting on the horizon, many prospective homebuyers and homeowners are wondering what it could mean for mortgage rates. After years of relatively high borrowing costs, even the slightest dip could open doors for those hoping to buy or refinance. But the path forward is far from clear.

Mortgage rates today are steady, but loan demand fell 10% after recent rate increases. See what’s driving today’s trends.

- Mortgage Rate Spread Remains Elevated: The spread between the 10-year Treasury yield and 30-year mortgage rates has widened to ~2.5%-well above the historical 1.5% average. This adds cost to borrowing and slows affordability improvements, even if the Fed holds interest rates steady.

This summer’s housing market feels like a riddle — prices are up, but competition is down. Mortgage rates dip, then spike, leaving buyers and sellers wondering: Is now the right time to move? The answer?

For Gen Z, respondents indicated they’re only willing to go up to a 5.8% rate from their current average of 5.1%. Millennials (born between 1981 and 1996), who have an average rate of 4.9%, say they would extend to a max of 5.5%.

Mortgage delinquencies are rising across the U.S., especially in southern states like Florida, Georgia, and South Carolina, a study by Cotality found. Escrow payments have surged – up 62% in the last 5 years – likely due to rising property taxes and insurance premiums.

NewHomeSource reports that stronger credit scores in 2025 lead to fewer risky loans, ensuring a more stable housing market compared to 2008.