If I understand things correctly, it's because the MBS buyers finally said that they believe inflation is going to be persistent and they require much higher re

If I understand things correctly, it's because the MBS buyers finally said that they believe inflation is going to be persistent and they require much higher returns. This opinion was unanimous. It came as a shock and indicates rates need to go higher, potentially much higher, in order for the market to continue to function. These higher rates, and the rate at which they're rising, could shock the housing market leading to ripples throughout the economy.