Mortgage rates climbed to their highest level in a year, with the average 30-year fixed mortgage rate rising to 6.66% from 6.58% the previous week.

The increase came as Treasury yields moved higher due to Middle East tensions and the Federal Reserve’s decision to keep interest rates unchanged.

Although housing inventory has improved, economists warned that higher borrowing costs continue to challenge buyers, especially first-time homeowners.

Experts said mortgage rates are unlikely to fall soon as inflation concerns remain and the Fed signals caution on future policy changes, Fox Business has reported.

Many existing homeowners are also staying in place because they have much lower mortgage rates, limiting available housing supply.