The Federal Reserve's meeting next week is also weighing on mortgage rates. Markets and economists anticipate another 75-basis-point hike to curb inflation. The question is whether a hike that size will be enough, or if the Fed will push for a 100-basis-point increase.

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly. Rates tend to track 10-year US Treasury bonds. But mortgage rates are indirectly impacted by the Fed's actions on inflation. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and with it, mortgage rates.

As a result, the spread between the 2-year and 10-year Treasuries moved even deeper into negative territory this week.

"This yield-curve inversion points toward growing investor concern that the Federal Reserve's rate setting is not likely to tamp down fast-running inflation," said George Ratiu, Realtor.com's manager of economic research. "Yield curve inversions have preceded most economic recessions of the past half century."

The Federal Reserve's meeting next week is also weighing on mortgage rates. Markets and economists anticipate another 75-basis-point hike to curb inflation. The question is whether a hike that size will be enough, or if the Fed will push for a 100-basis-point increase.

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly. Rates tend to track 10-year US Treasury bonds. But mortgage rates are indirectly impacted by the Fed's actions on inflation. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and with it, mortgage rates.

As a result, the spread between the 2-year and 10-year Treasuries moved even deeper into negative territory this week.

"This yield-curve inversion points toward growing investor concern that the Federal Reserve's rate setting is not likely to tamp down fast-running inflation," said George Ratiu, Realtor.com's manager of economic research. "Yield curve inversions have preceded most economic recessions of the past half century."