US mortgage rates ticked up to 6.09%, moving away from a three-year low. The increase follows a broader market shift where yields on government bonds—the benchmark for home loans—rose on renewed fears of a trade war.

Investors are reacting to geopolitical tensions surrounding Greenland, which has injected fresh uncertainty into global markets. Higher bond yields directly translate to costlier borrowing for homebuyers, potentially cooling an already fragile housing market as affordability constraints mount.

The move reverses a recent downward trend that had offered some relief to borrowers. Looking ahead, any escalation in trade rhetoric could push yields and mortgage rates higher, testing the resilience of consumer demand and the broader economic outlook.