US mortgage rates climbed to their highest level in more than a year last week, extending a steady rise in borrowing costs. The contract rate on a 30-year mortgage increased 6 basis points to 6.85% in the week ended Sept. 4, according to Mortgage Bankers Association data released Wednesday. This rise follows a steady climb in borrowing costs since the start of the Iran war.

Meanwhile, the rate on a five-year adjustable mortgage dropped to 6.13%. Homebuyers face higher monthly payments as borrowing costs remain elevated, impacting affordability across the market. The data underscores ongoing volatility in the housing sector as rates continue their upward trajectory since mid-2025.