Mortgage rates are moving higher again and it's putting new pressure on the housing market.

This time, the driver isn't the economy, it's global conflict.

I'm Kathy Fedke and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

According to the Mortgage Bankers Association, the average 30-year fixed-rate mortgage rose to 6.43% last week.

That's up from 6.3% the week before.

That marks the highest level in about five months.

At the same time, mortgage demand drops sharply.

Total applications fell 10% on a seasonally adjusted basis, while refinance applications dropped 14%. Even small rate increases can have a

big impact today. Affordability is already stretched for many buyers. Higher monthly payments are

pushing more people out of the market.

And what's behind the move? Rising geopolitical tensions involving Iran have pushed energy prices higher.

That matters because higher oil prices can lead to higher inflation. And when inflation stays

elevated, the Federal Reserve is less likely to cut rates.

Mortgage rates don't move directly with the Fed, but they are heavily influenced by the 10-year Treasury yield.

As inflation expectations rise, treasury yields tend to rise as well.

On top of that, lenders add a risk premium, which has also increased in recent weeks. Together,

those forces are pushing mortgage rates higher. According to MBA Deputy Chief Economist

Joel Kahn, higher oil prices are helping keep Treasury yields elevated, which is feeding directly

into higher mortgage rates. He also noted that affordability challenges

and economic uncertainty are causing more buyers to step back. The housing market was already

facing headwinds. Inventory remains limited in many areas, even as some regions are starting

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