"Without a clear direction, markets are confining mortgage rates to move within a tighter range, as the sharp upward push has moderated," he said.

In response to high inflation the Federal Reserve raised its benchmark interest rate by 75 basis points last week, the second hike of that size in as many months.

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly. Instead, mortgage rates tend to track 10-year US Treasury bonds. But they are indirectly impacted by the Fed's efforts to tame inflation.

As for consumers, he said, they continue to spend, amassing a record $16.2 trillion in household debt according to data the Federal Reserve released this week.

"The big question for consumers is whether companies will over-react to the recession concerns and start trimming payrolls," Ratiu said. "A sharp pullback in hiring could have a direct impact on people's ability to keep spending, especially with today's high inflation."

"Without a clear direction, markets are confining mortgage rates to move within a tighter range, as the sharp upward push has moderated," he said.

In response to high inflation the Federal Reserve raised its benchmark interest rate by 75 basis points last week, the second hike of that size in as many months.

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly. Instead, mortgage rates tend to track 10-year US Treasury bonds. But they are indirectly impacted by the Fed's efforts to tame inflation.

As for consumers, he said, they continue to spend, amassing a record $16.2 trillion in household debt according to data the Federal Reserve released this week.

"The big question for consumers is whether companies will over-react to the recession concerns and start trimming payrolls," Ratiu said. "A sharp pullback in hiring could have a direct impact on people's ability to keep spending, especially with today's high inflation."