Renewed concerns over tariffs and the broader economy drove treasury yields higher last week, and mortgage rates followed. As a result, total mortgage application volume dropped 10% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.

“Treasury yields finished higher last week on average despite an intra-week drop, driven partly by renewed concerns of the impact of tariffs on the economy,” says Joel Kan, deputy chief economist at the Mortgage Bankers Association.

The average rate on 30-year fixed home loans increased to 6.72% for the week ending July 10, up from 6.67% last week.