M
ortgage applications are on the rise, but a surge in interest rates and job loss concerns may stall momentum. Key indicators suggest an uneven market, with some neighborhoods experiencing increased demand while others struggle to attract buyers.

    Mortgage rate activity jumped 9.4% last week as buyers locked in lower rates, but this trend is reversing due to a strong June jobs report and ongoing tariff uncertainty. The average 30-year fixed-rate mortgage has risen to 6.72%, according to Freddie Mac, with Mortgage News Daily reporting a slightly higher rate of 6.79%.

    Despite the uptick in applications, pending sales numbers remain sluggish, indicating that lower rates may not be enough to coax buyers off the sidelines. Economic headwinds, including tariffs and rising consumer debt, could continue to hinder the housing market.

    Employment worries are growing, with Fannie Mae's Home Purchase Sentiment Index dropping 3.7 points in June due to increased job loss concerns. However, touring activity and Google searches for home sales remain strong, creating an uneven market where some homes sell quickly while others sit longer on the market.

    The Northeast and Midwest continue to see stronger demand and lower inventory, while the South and West have more inventory and less demand. As a result, prices are slowly turning in buyers' favor, making it a more competitive market in certain areas.