[U.S. mortgage rates rose to 6.85%, the highest in more than a year] September 9th, U.S. mortgage rates rose to their highest level in more than a year last week and have continued to rise steadily since the outbreak of the Iran war at the end of February. Data released by the Mortgage Bankers Association (MBA) on Wednesday showed that the contract interest rate on a 30-year mortgage rose 6 basis points to 6.85% in the week ended September 4. However, the interest rate on mortgages with fixed rates for the first five years and adjustable rates thereafter fell to 6.13%. Before the war with Iran broke out in late February, mortgage rates had fallen to their lowest levels since 2022. Mortgage rates have since risen by about 0.75 percentage point as the conflict has pushed up energy prices and heightened inflation concerns. Rising borrowing costs have dampened demand for loans. The MBA Refinancing Index fell 6.2% to its lowest level since May 2025. MBA home purchase loan application index fell 0.2% from the previous week.