Global politics have been the major driver of mortgage rate fluctuation over the past week.

As it became clear in the second half of last week that there would be no need for early elections in Italy and Spain, global political risk waned and mortgage rates rose steadily in response.

Rates remained higher despite the Trump administration’s announcement of new tariffs on steel and aluminum exports from Canada, Europe and Mexico at the end of last week. All three countries announced they would retaliate, and trade relations will be one of the key topics discussed at this week’s upcoming G7 summit. If the countries do not reach a compromise at the summit, trade tensions could escalate.

Strong economic data releases, like the U.S. jobs data released Friday, continued to signal a strong economy, putting further upward pressure on rates. With no major Fed announcements or economic data releases scheduled for this week, financial markets will likely continue to keep an eye on global political news and trade tensions.