The average rate on a 30-year fixed U.S. mortgage stood at 6.67%, according to Freddie Mac, near the highest level in more than a year. The older report said the rate slipped from 6.69% the prior week, ending five straight weekly increases, while the newer report described 6.67% as up from 6.43% in early July and 5.98% before the U.S.-Iran war began. Softer U.S. labor-market and inflation data, including a core inflation measure at a five-year low, reduced expectations for a near-term Federal Reserve rate increase, with CME FedWatch showing a 38% implied probability of a 25-basis-point hike in September. At the same time, higher 10-year Treasury yields and concerns that the U.S.-Iran conflict could lift oil and energy prices and revive inflation have kept mortgage borrowing costs high. Elevated rates are weighing on housing activity: U.S. home sales fell 4.1% in July from June, the average monthly payment on a typical U.S. home has risen by nearly $150 since the start of the year, and housing markets in the U.K., Germany and France have also seen mortgage costs rise.