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

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.

Bad news first: mortgage rates have been moving steadily higher in July with the average top tier 30yr fixed scenario rising from 6.67% to 6.81% in just 4 business days.  This isn't an incredibly abrupt move,

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.

- 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.