Another factor is inflation, which remains persistently higher than the Fed’s target of 2 percent. The Labor Department reported that inflation had edged up to 2.4 percent in May, an uptick from April, but still tame enough to relieve some of the pressure on mortgage rates.

Average mortgage rates in June are 62 basis points down on the same period last year and mortgage applications are up 41.7% year-on-year.

Mortgage rates hiked a little on July 5, but weren't too high. Today, the average 30-year fixed mortgage rate increased by one basis point to 6.59%, as per Yahoo Finance.