Weekly housing indicators suggest a modest cooling as mortgage rates spent most of last week above 6.64% and the Iran conflict escalates.

With rates near yearly highs and above 6.64%, purchase apps slipped 7% weekly and 2% yearly, but pending sales stayed ahead of 2025.

MBA says applications fell as the 30-year fixed rate rose to 6.65%, while the refinance index increased 4% and purchases fell 7%.

Pending sales rose to 63,971 versus 61,143 in 2025, inventory ended at 844,011, and price cuts were 39.57% versus 41%.

MBA reports applications fell 2.2% for the week ending July 3, with refis down 4% and purchase activity down 1% on an adjusted basis.

Mortgage spreads improved to 2.01%, keeping rates near 6.60% as total pending sales rose to 422,120 vs 396,652 last year.