Mortgage rates inch lower to 2.96%, housing market sees slowdown

• Despite the stronger economy, the housing market is experiencing a slowdown in purchase application activity due to modestly higher mortgage rates. However, it has yet to translate into a weaker home price trajectory because the shortage of inventory continues to cause pricing to remain elevated," Freddie Mac’s Chief Economist Sam Khater commented.
• 30-year fixed-rate mortgage averaged 2.96% for the week ending June 10, lower from 2.99% recorded in prior week and down from 3.21% averaged in same period a year ago, according to the Freddie Mac Primary Mortgage Survey.
• 15-year FRM averages 2.23% down from last week when it averaged 2.27% and 2.62% a year ago.
• 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.55%, down from 2.64% in prior week, and lower from 2.62% a year ago.
• Fannie Mae's May data indicated by Home Purchase Sentiment Index shows that homebuyers are significantly discouraged by the current housing market; 35% of consumers believe now is a good time to buy a home, down from 47% in April while people who believe it is a bad time to be a homebuyer increased to 56% from 48%.
• HousingWire’s lead analyst Logan Mohtashami said, "Life for the builders has been good with mortgage rates at 3%. When mortgage rates go over 4%, life might not look so cheery. We know this because the last time mortgage rates hit 5%, we had a supply spike, and the builders' stock felt this being down more than 25% from their recent peaks."
• Also, a new survey from Fannie Mae indicates 69% of lenders expect their profit margins to decrease in the next three months, which is a record.