Mortgage rates forecast

Depressed Treasury yields have kept mortgage rates under 3% recently, but positive economic news could indicate larger increases will follow this week’s uptick.

Inflation, an improving economy and the increased federal budget deficit make rate increase inevitable this year, the Mortgage Bankers Association said.

While it’s the third straight week of a downward trend, borrowers likely have only a brief opportunity to take advantage of sub-3% rates before a reversal comes.

Rising cases and vaccine issues caused bond yields to fall, but inflationary pressures will likely reverse that course.

Vaccinations and a third round of stimulus payments are boosting consumers views on the housing market, according to Fannie Mae.

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.

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.

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

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