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.

Inflation data out Tuesday showed early signs of tariff-induced price growth. Here's why that's not good news for mortgage rates.

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.