From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 7/8/2026
U.S. equity markets are trading lower this morning as investors react to renewed geopolitical tensions in the Middle East and a sharp rise in oil prices. Market sentiment weakened after reports suggested deteriorating conditions in U.S.-Iran relations, prompting concerns about potential disruptions to global energy supplies. Higher oil prices have renewed worries about inflation and the possibility of upward pressure on interest rates, while investors are also awaiting the release of the Federal Reserve's June meeting minutes for additional insight into the policy outlook.
Mortgage application activity edged lower in the latest Mortgage Bankers Association (MBA) survey for the week ending July 3, 2026. Total mortgage applications declined 2.2% from the previous week on a seasonally adjusted basis, reflecting relatively subdued borrower demand as mortgage rates remained elevated. Refinance applications fell 4.0% from the prior week, while purchase applications slipped 1.0%. The average rate for a 30-year fixed-rate conforming mortgage increased to 6.58% from 6.57%, marking the eighth consecutive week that rates remained above 6.5%.
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