Mortgage rates rose sharply this week, after pulling back over the last three weeks.

The 30-year fixed hit 5.36% Monday and then moved higher again Tuesday to 5.47%, according to Mortgage News Daily. Volatility in global markets Monday sent bond yields higher. Mortgage rates follow loosely the yield on the 10-year U.S. Treasury.

The average rate on the popular 30-year fixed loan ended last week at 5.25%. The average rate on the popular 30-year fixed loan ended last week at 5.25%. The last high, three weeks ago, was 5.67%, but the rate dropped as the stock market sold off and bond yields fell.

The jump Tuesday was likely due to data released from the U.S. Manufacturing Index.

“The uptick in the manufacturing index suggests the economy isn’t slamming on the brakes very quickly,” wrote Matthew Graham, COO of Mortgage News Daily on the site.

Mortgage rates, which are much higher than they were at the beginning of the year, have slammed the brakes on the red-hot housing market over the past few weeks. Realtors are reporting lower sales, and mortgage demand to purchase a home is also dropping.  

While both home sales and mortgage demand are falling, home prices are still rising fast. Prices usually lag sales by about six months, but the rare dynamics in the market today – strong demand and very low supply – are still keeping prices high.

The National Association of Realtors’ chief economist, Lawrence Yun, did say on CNBC’s Power Lunch Monday, “It’s just inevitable that home price appreciation will slow down in the upcoming months.”