Mortgage rates hit highest level in a year amid persistent inflation fearsMortgage rates in the U.S. hit their highest level in a year on Thursday as renewed tensions in the Middle East and the Federal Reserve’s interest rate decision this week fanned inflation concerns. The rate on a conventional 30-year mortgage averaged 6.66% in the week ending July 30, the highest level since July 2025, according to data from Freddie Mac. Inflation can drive up mortgage rates, which tend to track the bond market, particularly the 10-year Treasury yield. “Between that and Iran, we’re seeing Treasury yields surge, and mortgage rates are being dragged up along with them.” Mortgage rates are also drifting higher amid concerns that fighting in the Middle East could accelerate inflation, as shipping disruptions in the region push up oil and fuel prices.