India, Oct. 12 -- US mortgage rates have climbed sharply in just over a month. Mortgage rates in the US have risen by about one percentage point to nearly 7.5%, reaching their highest level in around three years. The sudden increase has made home loans more expensive for buyers.

Mortgage rates could reach 8% if current pressures continue. Experts say it is difficult to predict exactly where mortgage rates will go next. However, continued pressure from inflation, economic growth, government borrowing and global uncertainty could push rates even higher. An 8% mortgage rate is now becoming a realistic possibility rather than a distant risk.

The US attack on Iran on February 28 added to concerns about inflation. Mortgage rates jumped in the...