Mortgage rates

Yields have jumped so much this year, nearly doubling those on 10-year Treasuries, that it recalls past buying opportunities that paid off when the tide turned.

Federal Reserve Bank of Atlanta President Raphael Bostic said policy makers could potentially pause interest-rate increases in September after hiking by a half point at each of their next two meetings.

Current volatility has contributed to slowdowns across the industry, with further reduced originations now predicted for the year.

Signs of deteriorating liquidity in U.S. Treasuries, such as measures of market depth and bid-ask spreads, are “more or less in line with the increase in volatility in markets,” New York Fed President John Williams said Monday.

But growing worries about a possible recession may also end up playing a role in their direction over the coming weeks.

The moves were widely anticipated, with the markets already pricing them in, as the central bank attempts to get the upper hand on record-setting inflation.

The Federal Reserve delivered the biggest hike in interest rates since 2000 and announced it would start shrinking its massive balance sheet next month, deploying the most aggressive tightening of monetary policy in decades to combat soaring inflation.

Nearly two-thirds were willing to make an offer within three days of viewing a house; 20% stated they would do so on the same day.

But the recent spike has contributed to a noticeable downturn in purchase demand, according to Freddie Mac.

Recent affordability and interest rate trends led to “clear evidence” of discouragement among potential consumers in the purchase market in the first three months of 2022, according to the National Association of Home Builders.

Federal Reserve Chair Jerome Powell outlined his most aggressive approach to taming inflation to date, potentially endorsing two or more half percentage-point interest-rate increases while describing the labor market as overheated.

The unexpectedly swift increase may dampen some of the home-buying demand seen in the past year.

Money markets already betting on an almost half-point Federal Reserve rate hike next month received a wake-up call Monday from St. Louis Fed President James Bullard who said a three-quarter-point increase shouldn’t be ruled out.

Researchers at the government-sponsored enterprise noted the role rising rates are playing in increasing housing costs in its report, now offered publicly for the first time.

The 30-year average has risen by more than a full percentage point in a little over a month.

Ten-year U.S. yields climbed through 2.75% for the first time since March 2019 as investors priced in the impact of the Federal Reserve’s tightening plan and accelerating inflation.

Purchasers concerned over rising costs are jumping into the market now instead of taking a wait-and-see posture.

Further upward pressure is likely this spring, as markets prepare for expected reduction of bond purchases by the Fed.

The 30-year average passed the 4.5% mark for the first time since January 2019 as the labor market tightened and prices rose.

Federal Reserve Governor Christopher Waller said longer-run structural issues will continue to put upward pressure on home prices and rents even as the central bank begins a campaign to raise borrowing costs.