My perspective has long been -- since well before the free money printer stopped going brr -- that the reason tech interviews are insane has little to do with rising interest rates or monetary factors per se.

It's because tech dev / coding jobs are one of the few white collar fields that, historically, have not de-facto required a pile of advanced degrees. Maybe i'm getting old, but "you don't need a degree if you're hot shit" has long been part of the atmosphere: from old school hackers to the long history of founders who drop out of school to work on their startup, etc.

This directly leads to interviews being the gate: if we can't know what you are by what degrees you have / what papers you published / what lab you did your dissertation in / what bar exam you passed / what hospital you did your residency in / who you clerked for / etc. ... then we're going to have to do all 4-8 years of post-undergrad pain and suffering all at once, during the interview, so grab a whiteboard and buckle up!

It's ... less than ideal.

edit: what's less than ideal is the perverse incentive force that creates bad interviews. The recognition that a degree doesn't guarantee job fit is not a bad one, though; you really can be more successful in software dev if you're self-taught / uncredentialed than you can in many other disciplines.