US Mortgage Rates Soar to Highest Level in a Year Amid Inflation Fears

US mortgage rates have reached their highest level in a year, hitting 6.66% for a 30-year fixed mortgage, according to Freddie Mac's Primary Mortgage Market Survey released Thursday.

The rate increase was driven by inflation concerns, Federal Reserve policy expectations, and geopolitical tensions, which continued to push long-term borrowing costs higher.

Mortgage rates generally track the 10-year US Treasury yield rather than the Fed's benchmark interest rate, which rose after the central bank left its policy rate unchanged on Wednesday.

Three members of the Federal Open Market Committee voted for a rate hike, fueling expectations that borrowing costs could increase later this year.