Overview
- Mortgage pricing peaked in late May at about a 10-month high and then eased to the mid-6% range in early June, with Zillow reporting roughly 6.54% on June 1.
- Weekly application data show demand softening: mortgage applications fell about 8.5% and refinance requests dropped roughly 18% in the week ending May 22, signaling payment-sensitive buyers are pausing.
- Markets say the main drivers are higher 10-year Treasury yields and a recent rise in oil prices, which lift inflation expectations and prompt lenders to charge higher rates.
- Buyers and agents are responding by shopping multiple lenders, considering adjustable-rate mortgages, buying discount points, and using seller buydowns or credits to reduce monthly payments.
- Local conditions vary: improved inventory in many markets gives some buyers negotiation leverage, and Fannie Mae projects a 2026 average 30-year rate near 6.3%.