India, Aug. 7 -- Average US mortgage rates have climbed to their highest level in a year, as investors grow increasingly anxious that elevated oil prices stemming from the conflict with Iran will keep inflation stubbornly high.

The average 30-year fixed-rate mortgage reached 6.66 per cent this week, according to data from the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, marking its highest level in a year, up from 6.72 per cent at the end of last July.

Mortgage Rates: What Is Driving Rates Higher Right Now?

Analysts point to the intersection of energy markets and monetary policy as the central force behind the rise. Since the United States and Israel began joint strikes on Iran in February, investors have grow...