US mortgage rates have risen to their highest level in a year, increasing borrowing costs for prospective homebuyers and potentially further weakening an already subdued housing market. The rise reflects investors’ concerns that the war involving Iran will keep oil prices high and revive inflation, pushing up the longer-term bond yields that strongly influence mortgage rates.

Freddie Mac said the average rate on a 30-year fixed mortgage reached 6.66%, compared with 6.72% a year earlier. Rates had fallen to below 6% earlier in 2026 but climbed as the conflict drove energy prices higher; higher rates also add pressure to buyers facing high house prices and broader living-cost concerns.