Weekly Mortgage Rates Rise as Tariffs’ Effects Emerge

Market analysis reveals Mortgage rates rose again this week, indicating that last week's rise — after five straight weeks of decline — may have signaled a turning point

Moreover, Furthermore, The average rate on a 30-year fixed-rate mortgage rose six basis points to 6 (remarkable data)

However, 84% the week ending July 17, according to rates vided to NerdWallet by Zillow

On the other hand, A basis point is one one-hundredth of a percentage point

Here's what's pushing up mortgage rates, and why we could see rates go higher, in this volatile climate

CPI comes in on targetThe biggest economic news this week was Tuesday's Consumer Price Index announcement from the Bureau of Labor Statistics (remarkable data), in today's financial world

CPI is a key measure of the rate of inflation

Basically, each month the BLS checks the costs of a wide range of goods and services to gauge how prices change from month to month and year to year

The numbers for June came in pretty much as economists had predicted — a moderate increase from last month

In other words, if it feels everyday goods cost more, it's because many of them do, considering recent developments

There are two ways to look at these numbers, in today's financial world

There's the glass-half-full version: Inflation's behaving as predicted, and it could be a lot worse

Furthermore, But it's easy to see the glass as half empty if you start looking at individual components of the CPI, considering recent developments

In looking at June's numbers, economists were particularly attentive to ly to be affected by tariffs

The current administration's on-again, off-again tariffs have repeatedly threatened to raise prices for U

Consumers, but through the spring those threats hadn't fully materialized

Moreover, June may turn out to be an inflection point, as CPI that include items ly to be affected by tariffs showed accelerating inflation

Components of that category had steeper increases (quite telling) (something worth watching)

However, Explore mortgages today and get started on your ownership goalsGet personalized rates

Your lender matches are just a few questions away

Moreover, Do you want to purchase or refinance

Select your optionPurchaseRefinanceWhat's your perty type (noteworthy indeed)

Furthermore, Select your optionSingle family TownhouseCondoMulti-family How do you plan to use this perty (which is quite significant)

However, On the other hand, Select your optionPrimary residenceSecondary residenceInvestment pertyGet StartedWon’t affect your credit scoreFed ly to holdAll of these numbers are certainly going to get attention from the Federal Reserve, which meets at the end of this month

The central bankers have been under pressure to lower the federal funds rate, the short-term interest rate the Fed controls that essentially sets the tone for borrowing costs

On July 1, while speaking at a conference in Portugal, Fed chair Jerome Powell acknowledged that the bankers would have already begun cutting rates this year were it not for tariffs. "In effect we went on hold when we saw the size of the tariffs," Powell said

Conversely, "We think the prudent thing to do is to wait and learn more" tariffs' impacts

Were already betting that the Fed's pause would continue with the July 29-30 meeting, but after those CPI numbers dropped, the number of holdouts hoping for a rate cut dwindled

Keeping inflation in check helps the Federal Reserve achieve its mandate of price stability, and higher interest rates are its main lever for managing inflation (fascinating analysis), in this volatile climate

If the Fed takes the glass-half-empty view on the CPI data, a rate cut is extremely unly (noteworthy indeed)

Mortgage rates heading higherIf you're thinking, "That's interesting, but I came here to read mortgage rates," let's get into it

The CPI data and the Fed's potential actions — or inaction — give us the context we need to understand what's happening with mortgage rates

Additionally, Mortgage rates drifted lower all through June, as even though the Fed held the funds rate steady at its June 17-18 meeting, it felt cuts could be imminent (something worth watching)

Ly, the vibe has shifted

In contrast, Mortgage interest rates may not be set by the Fed, but they react to the same economic ups and downs

This leads to the conclusion that July 3 jobs report showed strength, and while positive for the economy, that's an argument against lower interest rates

And indeed, that news sent mortgage rates higher (an important development)

Add concerns inflation, and you've got a recipe for rates staying higher for longer

Higher mortgage interest rates add to affordability challenges

And tariffs and inflation aren't just concerns for the Fed — these affect household budgets, too (something worth watching)

In contrast, "spective buyers are increasingly feeling the financial stress of higher prices for everyday things, which makes it harder to think buying a," Lisa Sturtevant, chief economist for Bright MLS, said in an ary

Moreover, Additionally, If a purchase is on your horizon, you may want to make sure that your buying budget could accommodate slightly higher mortgage rates (an important development)

Should rates fall, you'll be able to afford more house; if rates rise, you'll still be on track for your goal

With an educational background in sociology, Kate feels strongly inequality in ownership and higher education