Dive summary:

• Depending on whom you ask, consumers are losing confidence as mortgage rates rise and are stepping back somewhat on home purchases, or they are actually more enthusiastic because they know rates will go up if they don not act now or it's all just a blip on the economic radar.
• Doug Duncan, Fannie Mae chief economist and vice president, says the agency is seeing a decline in consumer confidence about housing since the start of the year, while Paul Diggle, senior U.S. economist for Compass Point, says that refi application volumes have dropped, but purchase applications are doing OK and a growing inventory of homes will slow price increases.
• Quicken Loans chief economist Bob Walters says buyers are actually getting more enthusiastic because they want to get into homes before rates rise any more.

From the article:

Consumers expect home prices to continue to grow on average during the next year, but at a reduced pace of 3.4%. ...