The Feds are expected to raise their overnight rate in July after no increase this month. There’s not a lot of activity in the markets which have already priced in next month’s expected to increase to 5.25% and with talks of one additional rate hike before year-end (most likely September) the markets will most likely begin go price that in as well which will increase mortgage rates further.
The only way we can expect to see the Feds softening their stance is if we begin to see some weakness in the labor market or a big improvement in the Julyl CPI inflation number.