Slowing economy weighs on buyer sentiment

A slowing economy has increased concerns around job security, which has weighed on mortgage applications for home purchase even as mortgage interest rates have stayed close to three-year lows. Coupled with low levels of home inventory, that will prevent much of a rise in existing home sales over the remainder of the year. But low mortgage rates, coupled with tight inventory, have provided some support to house prices. The gradual decline in annual house price growth came to a halt in June. Evidence of tightening in rental markets has kept rental growth elevated in recent months, and alongside slowing house price growth that has led to some recovery in gross rental yields.