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

Higher rates since the start of the war had been keeping homebuyers on the sideline, but mortgage applications to buy a home surged higher last week, up 1% for the week and up 21% from the same period a year ago, according to to the Mortgage Bankers Association.

More supply is coming on the market, and home prices in some markets are starting to ease. Real estate brokerages have been reporting higher traffic among buyers recently, suggesting consumers may be digesting the higher rate environment and the ongoing uncertainty in the economy from the war.

It remains to be seen if this latest rate surge will continue and what effect that may have on the rest of the spring housing market. The Federal Reserve is not expected to change interest rates at its meeting Wednesday.