Mortgage rates are at their highest levels since July of last year

Mortgage rates are at their highest levels since July of last year, with concerns that government debt is driving up the cost of homeownership.

According to Freddie Mac, the average 30-year mortgage is just over 6.7%. That means monthly payments for a typical new mortgage are well over $100 more expensive than before the start of the U.S. war against Iran.

NerdWallet housing expert Kate Wood says renewed fighting in the war is one reason for rising rates.

“Every time things escalate … fears around inflation go up, oil prices tend to go up, bond yields start going up, mortgage rates start going up.”

Another indirect factor affecting mortgages? Borrowing costs are also rising as investors price in a possible interest rate hike this month from the Federal Reserve.

An NPR editor adapted this audio report by Stephan Bisaha.