Mortgage rates

After two straight months on an upward trajectory, rising interest rates pushed homebuyer demand down to a third of where it stood at the start of 2021, according to Freddie Mac.

While there were fewer new mortgages sought on a week-to-week basis, the index was higher than it has been during the same week in the last two years.

But the 10-year Treasury yield began backing down after the weekend as investors reacted to turmoil in Europe.

From offering operations folks big bonuses to grooming recent grads, lenders are getting creative in their efforts to manage staffing throughout the boom-bust cycle.

Household formations, looser credit and an improved economy will overcome higher rates — and even the inventory shortage.

However, the increase has been more gradual than that seen in Treasury yields, and loan activity has only subsided slightly to date.

While the economic recovery and stimulus checks drove upward movement in purchases, it wasn’t enough to offset tumbling refinance activity.

Apart from saving more money, millennials prefer to spend their savings on a home down payment, Zonda economist Ali Wolf said.

Economists see two quarter-point hikes in 2023. But they also expect the U.S. central bank’s own forecast will show the median Fed official projecting rates staying on hold near zero throughout that year.

After a booming 2020, more mortgage lenders than ever before expect diminishing margins in the coming months as climbing interest rates set up heightened competition.