Mortgage Demand Drops in the U.S. as Producer Prices Stabilize in June
On July 16, official U.S. data revealed a clear slowdown in housing market activity amid rising borrowing costs, while wholesale prices showed signs of stability.
The average 30-year mortgage rate rose slightly to 6.82%, pushing many buyers and homeowners to hold back.
Mortgage applications fell sharply by 10% last week, reversing previous gains. The index that tracks home purchases dropped from 180.9 to 159.6, and refinancing activity also declined.
These numbers reflect how higher interest rates are making loans less affordable and slowing housing demand.
Meanwhile, producer prices showed no increase in June compared with May, signaling that inflation pressures on companies may be easing.
Mortgage Demand Drops in the U.S. as Producer Prices Stabilize in June
Year-over-year, wholesale prices rose 2.3%, down from 2.7% in May. Core producer prices, which exclude volatile food, energy, and transport costs, stayed flat month-over-month and rose 2.6% annually—also a slowdown from previous months.
Industrial data brought cautious optimism. Capacity utilization nudged up to 77.6%, slightly above expectations but still below average.
Industrial production increased 0.3% last month, with manufacturing output up 0.1%. These trends suggest factories maintain steady, modest growth.
Overall, the data show Americans facing tighter borrowing conditions that curb home buying, while businesses benefit from less pressure on production costs.u
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