FX.co ★ US Mortgage Rates Hit 15-Month High

The average contract rate on a 30-year fixed mortgage in the US climbed to 6.85% in the week ended September 4, the highest level since June 2025, according to the Mortgage Bankers Association. The move tracked a rise in Treasury yields, as renewed tensions in the Middle East stoked inflation fears and robust US labor-market data bolstered expectations of a Federal Reserve rate hike in September. Mortgage rates have increased by nearly 80 basis points since the US and Israel began strikes against Iran in late February. In response, overall mortgage applications declined 2.7%, erasing a 0.8% gain the previous week. Refinancing applications fell 6.2%, while applications for home purchases slipped 0.2%.