US mortgage rates have climbed to 6.85 percent, their highest level in 15 months. Pictured is a house for sale in Park Ridge, Illinois. (Getty Images)
US mortgage rates have climbed to 6.85 percent, their highest level in 15 months. Pictured is a house for sale in Park Ridge, Illinois. (Getty Images)

US mortgage rates rose to their highest level since last June, marking a 15-month high.

The average rate on a 30-year fixed mortgage stood at 6.85 percent last week, from Aug. 29 to Sept. 4, the Mortgage Bankers Association said Wednesday (local time), according to Reuters and Bloomberg.

The rate had fallen to its lowest level since 2022 by late February. But it has climbed about 0.75 percentage point since the outbreak of the Iran war, surpassing the level seen last June. The increase is attributed to rising energy prices and growing inflation concerns stemming from the conflict.

The yield on the 10-year US Treasury note, which heavily influences mortgage rates, rose to 4.82 percent during trading on Sept. 2, its highest level since November 2023.

The surge in borrowing costs has also dampened demand. The MBA's refinancing index, which tracks applications to switch loans, fell 6.2 percent from the previous week to its lowest level since last May. An index tracking applications for home purchase loans also slipped 0.2 percent.


kate01@heraldcorp.com