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Mortgage Lenders Predicting Profit Drops: The Investor Impact


[Updated: Jun 09, 2021 ] Mar 16, 2021 by Aly J. Yale
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The recent rise in the 10-year Treasury yield is putting some upward pressure on mortgage rates. Some lenders commented that, for now, they are willing to absorb some of these costs to maintain volume. However, in the longer term, continued upward pressures on interest rates would likely dampen home sales and mortgage originations as lenders raise mortgage rates. This, in turn, might push lenders to reduce their production capabilities.