The average rate on a 30-year fixed-rate mortgage jumped to 6.66% on Thursday, its highest level in a year, as inflation concerns fueled by the Federal Reserve's interest rate stance and the war in the Middle East continue to push borrowing costs higher. The increase marks a steady climb in recent weeks, reversing the modest declines seen earlier this year. Analysts point to persistent inflation pressures, which have led the Fed to signal it will maintain higher interest rates for longer than previously expected. Simultaneously, rising geopolitical tensions in the Middle East have driven up energy prices, adding to inflation worries. These factors are squeezing homebuyers, reducing affordability and dampening demand in the housing market. The 6.66% average rate represents a significant jump from the 6.35% recorded just six weeks ago, according to industry data. While rates remain below the 7.08% peak of late 2023, the upward trend is a setback for prospective buyers hoping for relief. The current level is the highest since November 2023, when rates briefly topped 7%. Economists suggest that without a clear easing of inflation or geopolitical stability, mortgage rates may stay elevated through the year.