US Mortgage Rates Reach Highest Level in Nearly a Year Amid Rising Oil Prices

The average US mortgage rate has risen to its highest level in nearly a year, affecting homebuyers' purchasing power. The benchmark 30-year fixed-rate mortgage rate increased to 6.58% from 6.55% last week, according to Freddie Mac.

This is the third consecutive week of rising rates, which can add hundreds of dollars to borrowers' monthly costs. The 15-year fixed-rate mortgage rate also rose, increasing to 5.96% from 5.93% last week.

The current rate is higher than it was at this time last year, when the average 30-year mortgage rate was 6.74%. However, mortgage rates are influenced by various factors, including the Federal Reserve's interest rate policy decisions and bond market investors' expectations for the economy and inflation.

The 10-year Treasury yield, which lenders use as a guide to pricing home loans, has also risen to 4.7% at midday Thursday, up from 4.57% a week ago. The conflict in Iran has driven crude oil prices sharply higher, stoking expectations of hotter inflation and pushing long-term bond yields relative to their pre-conflict levels.