Average lenders pushed top-tier 30-year fixed mortgage rates back to 6.75%, matching the May 19 peak and the highest level in about a year.
Fuel-price pressure tied to the Iran war has lifted bond-market inflation fears, eroding demand for fixed-rate mortgage debt and forcing investors to seek higher yields.
Fed Governor Christopher Waller added to that pressure by saying the Fed could consider a rate hike as soon as this month if inflation data due Tuesday and Wednesday come in hot.
The move underscores how mortgage costs are being driven not just by housing demand, but by broader inflation risks spanning energy prices and the Fed's policy outlook.