Mortgage rates rose further in February, reaching their highest since May 2019. That weighed on mortgage demand, with applications for home purchase falling to their lowest level since the spring of 2020. But since then, the war in Ukraine has led to a sharp reversal in 10-year Treasury yields, and mortgage rates are therefore set to fall back. However, with many households having brought forward an application earlier in the year, it is not clear that will lead to a swift bounce back in demand.
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