Potential homebuyers may be able to save money with a little-known financing option, but they still need to watch their credit.

Homeownership is often seen as a cornerstone of the American Dream. But for some who bought in recent years, it’s become a costly source of stress.

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.

Mortgage applications dropped 10.0% amid rising interest rates and post-holiday adjustments.   Refinance activity declined 7%, while purchase app

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.

The average 30-year fixed mortgage interest rate is 6.75% today, up 0.04% from seven days ago. The average rate for a 15-year fixed mortgage is 6.00%, which is an increase of 0.06% compared to a week ago. To secure a lower mortgage interest rate, consider increasing your down payment, improving your credit score or purchasing mortgage points.

But in 2023 the average rate on a 30-year fixed mortgage was 6.8%, its highest in 22 years. Last year it was only slightly lower. And so the tricks of 40 years ago are back. Mr Sabic is among a small but growing band of homebuyers who have taken over their seller’s mortgage.

Tariffs are pushing 10-year Treasury yields higher—here’s why that could mean bad news for your mortgage refinancing plans and long-term borrowing costs.