FX.co ★ US Mortgage Rates Edge Higher Toward One-Year Highs

The average contract rate for a 30-year fixed mortgage in the US inched up to 6.79% in the week ended August 28, from 6.78% a week earlier, holding near the one-year highs reached in late July, according to the Mortgage Bankers Association. The move tracked higher Treasury yields as renewed tensions in the Middle East fueled inflation worries, while hawkish remarks from Federal Reserve Chair Kevin Warsh strengthened expectations for a rate hike in September. Since the US and Israel began strikes against Iran in late February, mortgage rates have risen by nearly 70 basis points. Total mortgage applications increased 0.8%, snapping a two-week decline, with purchase applications up 2.2%. In contrast, refinancing applications slipped 1.1%.