The average rate on a 30-year fixed mortgage in the United States climbed to 6.67% this week, the highest level in more than a year, up from 6.43% in early July and 5.98% before the U.S.-Iran war began. Rising yields on 10-year U.S. Treasuries, a benchmark for long-term borrowing costs, have been a main driver, lifting the average monthly mortgage payment on a typical U.S. home by nearly $150 since the start of the year. Borrowing costs have also increased in Europe: the average rate on a five-year fixed mortgage in the U.K. rose to 5.66% in July, the first month-on-month increase since April; Germany’s 10-year fixed mortgage rate rose to 3.7% this week from 3.3% in early July; and France’s 10-year fixed mortgage rate increased to 3.15% in July from 3.02% in June. Market participants say the U.S.-Iran conflict has pushed up oil and energy prices, deepening concerns about a rebound in inflation and raising financing costs including U.S. Treasury yields and U.K. swap rates (interest-rate derivatives benchmarks). Higher rates are further restraining housing transactions on both sides of the Atlantic, with the U.S. market still affected by a low-rate lock-in effect and agreed home sales in the U.K. down nearly 10% year on year in July.