Economic uncertainty at home or military conflicts overseas -- each taken alone -- would normally have a significant effect on the bond market. But now, even together, they have done little to move mortgage rates.

Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.88% from 6.84%, with points decreasing to 0.63 from 0.66, including the origination fee, for loans with a 20% down payment. That's according to the Mortgage Bankers Association.

"The combination of the ongoing conflict in the Middle East, current economic conditions, and last week's FOMC meeting resulted in slightly lower Treasury rates on average. However, mortgage rates still edged higher but remained in the same narrow range," said Jo

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