Mortgage rates continue downward trend on inflation rises assumed temporary

• Led by market view that inflation increases are temporary, 30-year fixed-rate mortgage averaged 2.93% for the week ending June 17, lower from 2.96% recorded in prior week and down from 3.13% averaged in same period a year ago, according to the Freddie Mac Primary Mortgage Survey.
• U.S. inflation jumped from 1.68% in February to above 5% by June. In related reads, SA Contributor Logan Kane recently wrote that the Fed believes inflationary to be transitory and provided a deep analysis on the same.
• Also, SA Contributor Hoya Capital Real Estate believes inflation to be worse than it looks.
• "While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller's market," Chief Economist Sam Khater commented.