In a fast-moving housing market, even a modest shift in interest rates can ignite buyer activity — and that’s exactly what we’re seeing right now. Mortgage applications just jumped at their fastest pace in over two years, fueled by a drop in interest rates and a wave of new listings.

But will this window of opportunity last?

Let’s break down what’s happening, why it matters, and how you should prepare.

📈 Purchase Applications Surge 25% Year-Over-Year

According to the latest data from the Mortgage Bankers Association (MBA), mortgage applications for home purchases climbed 9% week-over-week — and are up 25% compared to the same period last year.

This spike follows a drop in the average 30-year fixed mortgage rate, which recently fell to 6.77%, the lowest level in three months.

“Purchase activity picked up last week, driven by a modest drop in mortgage rates and an uptick in housing supply,” said Joel Kan, MBA’s Deputy Chief Economist.

In short: more homes + lower rates = more buyers jumping in.

🏡 Inventory Growth Unlocks Opportunity

One of the key drivers of renewed buyer activity is the rise in active listings. According to Realtor.com’s June Housing Trends Report, national inventory grew 28.1% year-over-year, hitting a post-pandemic high.

While many West Coast markets remain inventory-constrained, nationwide improvements are giving buyers more choice — and some relief from competitive bidding wars. With home prices also cooling in nearly one-third of the country’s largest metros, affordability is beginning to rebound.

📉 A Temporary Dip? Rates Begin to Rebound

Just as buyers were getting a break, new economic developments pushed mortgage rates slightly higher. After reaching 6.77%, the average 30-year fixed rose again to 6.74%, up 10 basis points.

What’s driving the volatility?

  • Jobs data: The U.S. added 147,000 jobs in June, surpassing expectations. While that’s good news for the economy, it reinforces inflation concerns, keeping pressure on interest rates.
  • Tariff threats: Renewed trade tensions and potential new tariffs are fueling investor uncertainty. The effective U.S. tariff rate is now at its highest since 1936, raising concerns about future inflation and consumer costs.

🧠 What It Means for Buyers Right Now

If you’ve been sitting on the sidelines, this may be your moment. Here’s why:

  • Rates are still below recent highs, but inching back up.
  • Inventory is improving, giving you more to choose from.
  • Home prices are stabilizing, especially in higher-priced markets.

But the window may be narrow. Inflation data, Fed policy, and global headlines can shift the mortgage landscape quickly.

Getting pre-approved early and understanding your budget in today’s rate environment is critical.

💡 Bottom Line

We’re seeing a flash of momentum in the housing market — but it’s not guaranteed to last. Mortgage rates dipped, inventory opened up, and buyers responded fast.

If you’re serious about purchasing, the next few weeks could be pivotal. Whether you're a first-time buyer or moving up, now is the time to review your financing, monitor rates closely, and explore new inventory.

If you'd like to receive multiple cash offers, compare neighborhood trends, or run the numbers on your buying power, I’m here to help.

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