Mortgage rates surge to nearly four-week high as Iran headlines impact markets

mortgage rates hit a nearly four-week high wednesday, with the 30-year fixed average climbing seven basis points to 6.45% — the highest since april 3. the move followed trump saying he'd maintain the u.s. naval blockade against iran until they agree to a nuclear deal. oil prices rose, and bond yields followed. mortgage rates loosely track the 10-year treasury yield. matthew graham at mortgage news daily said rates had been positioning for another de-escalation in the iran war, but "de-escalation hopes have been replaced by re-escalation fears." despite higher rates since the war started, mortgage applications to buy a home rose 1% last week and are up 21% from a year ago, per the mortgage bankers association. more supply is hitting the market and some home prices are easing. brokerages report higher buyer traffic. the fed isn't expected to change rates at its meeting wednesday.