From the Wall Street Journal (emphases added):
A rise in interest rates is slamming homeowners’ demand for mortgages, prompting large and midsize banks to cut jobs and warn investors of declining profitability in the home-loan business.
The slowdown is the latest hurdle for the banking industry, which already is grappling with tepid loan demand from corporate borrowers and higher compliance costs as regulators crack down on a broad swath of banking practices.
Could the reduced demand for mortgages be a significant indication that higher interest rates are starting to impact economic activity and therefore are near their cyclical top? If so, our estimate of the high end of the range for the 10-year US Treasury bond of 3-1/4% would be appropriate and bonds would be worth buying near current levels.