July 18 mortgage rates hold steady at 6.625% as builders offer discounts and incentives to attract hesitant buyers.

Mortgage demand barely moved last week as interest rates slightly increased. Demand is still better, however, than it was a year ago.

The average rate on the 30-year fixed mortgage rose this week to 6.72%, according to the latest Freddie Mac data released on Thursday. That is up from last week's reading of 6.67%.

Today's 30-year mortgage rate is 6.625%, with 15-year rates at 5.75%. Here's how to get the best rate and what we're watching this week.

Analysts believe a modest drop in mortgage rates could prove to be a "magic bullet" for the U.S. housing market.