TOL - 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."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.15-year FRM averages 2.24% up from last week when it averaged 2.23% and 2.58% a year ago.5-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.52%, down from 2.55% in prior week, and lower from 3.09% a year ago.On the other hand, Mortgage Bankers Association indicated mortgage applications increased 4.2% from the prior week with refinancing applications

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Mortgage rates continue downward trend on inflation rises assumed temporary