Mortgage Rates Just Hit a Four-Week High Thanks to Iran. Are Homebuilder Stocks a Buy on the Dip?

Mortgage rates have risen over the last month as investors price in the risk that an extended closure of the Strait of Hormuz could stoke inflation and push interest rates higher. The move is a modest headwind for housing affordability and mortgage demand, with the geopolitical risk channel driving the repricing.

Analysis

Mortgage rates have risen over the last month as investors price in the risk that an extended closure of the Strait of Hormuz could stoke inflation and push interest rates higher. The move is a modest headwind for housing affordability and mortgage demand, with the geopolitical risk channel driving the repricing.