US Mortgage Rates Climb to 6.66% as Iran War Fuels Inflation, Treasury Jitters

Mortgage rates in the United States ticked higher this week, with the average 30-year fixed-rate mortgage edging up to 6.66% from 6.65% the previous week, according to data released Thursday by mortgage buyer Freddie Mac. One year ago, the average rate stood at 6.56%, AP reported.

Higher mortgage rates add hundreds of dollars a month in borrowing costs, limiting homebuyers' purchasing power and prompting many prospective buyers to delay purchasing — a key reason U.S. home sales remain in a rut this year, the report noted. The current 6.66% average rate is back to where it stood four weeks ago and sits just below the 2026 high of 6.69% reached earlier this month. The average rate on 15-year fixed-rate mortgages also rose, to 5.98% from 5.95% the prior week, compared with 5.69% a year ago.

Mortgage rates are driven by inflation expectations, the Fed's policy rate decisions, and bond market signals — they generally track the 10-year Treasury yield used by lenders as a pricing benchmark. Both mortgage rates and the bond market have risen this year largely due to the US war with Iran, which has driven crude oil prices higher and heightened inflation expectations. Long-term bond yields remain steeper than before the conflict began in late February. Worries about the U.S. government's growing debt have compounded these pressures, prompting the Treasury Department to intervene in the bond market last week, though analysts say the effect may be limited.

**Sources:** Associated Press