Fed Hikes Rate Amid Rising Inflation Concerns

The Federal Reserve raised its benchmark interest rate by a quarter-point to about 3.9% for the first time in three years, signaling another potential hike later this year.

The move aims to combat stubbornly high inflation, which has been affecting households and businesses alike.

As a result, borrowing costs for mortgages, auto loans, and credit cards are likely to increase.

Average rates on 30-year fixed-rate home loans have risen to nearly 7%, their highest level in over 19 months, with the weekly average rate climbing to 6.95% from 6.76% last week.