07/18/2025
Your weekly economic update is here! Here’s what you need to know.
📈 Mortgage rates increased slightly for the second week in a row, adding another small bump on top of last week’s increase. The 30-year fixed rate has stayed within a narrow range since mid-April. While affordability remains a challenge, steady rates and growing inventory could encourage more buyers to move forward.
➡️ Mortgage applications fell 10% from one week earlier, as rising mortgage rates driven by economic uncertainty and tariff concerns slowed activity. Rates had been declining for two weeks but reversed course, contributing to the drop in applications. Purchase demand also weakened, reaching its lowest level since May.
✅ Consumer prices increased 0.3% in June, the biggest jump in five months, mainly due to higher rents and rising costs for goods affected by tariffs. While inflation is picking up in some areas, softer demand is keeping prices for services like travel in check. This mix of pressures may lead the Federal Reserve to hold off on rate changes until at least September.
📢 Wholesale prices held steady in June, showing no increase despite earlier forecasts, with goods prices rising slightly and services prices dipping. This, along with recent consumer inflation data, suggests tariffs are having only a small impact on the economy so far. As a result, markets expect the Federal Reserve to hold rates steady through July, with reduced chances of a cut in September.
