US Mortgage Rates Hit One-Year High Amid Oil Price Spike

The US mortgage interest rates have risen to their highest in about a year, according to the Mortgage Bankers Association. The rate on a 30-year fixed-rate mortgage climbed 7 basis points to 6.76% in the week ended July 24, just shy of a one-year high.

The rate on 15-year fixed-rate loans also increased, reaching 6.15%, the highest in over a year. Meanwhile, rates on adjustable-rate mortgages (ARMs) moved higher as well, with the 5-year ARM edging up to 5.98% last week.

The upward pressure on mortgage rates is attributed to the resumption of US-Iran fighting, which drove up oil prices and Treasury yields. The Federal Reserve's upcoming decision on interest rates is also expected to contribute to the sustained high rates.