US mortgage rates jumped sharply on Wednesday as geopolitical tensions with Iran spooked bond investors, reversing recent stability in the housing finance market.
The surge in borrowing costs reflects a broader repricing of risk as traders digest the implications of renewed military activity in the Middle East.
The move comes as market strategists raise alarms over potential volatility in global equities.
Military exchanges between the United States and Iran near the Strait of Hormuz have intensified concerns about regional stability and its downstream economic effects.
Investors are increasingly wary of supply chain disruptions and energy price shocks that could accompany further escalation.
Treasury yields climbed on Monday following the initial military exchange, signaling a shift in sentiment.