Fed Hikes Rates as Mortgage Costs Soar Past 6.9%

The Federal Reserve raised its benchmark interest rate to about 3.9% for the first time since 2023, signaling another potential hike later this year.

This move comes as Americans struggle with high costs for groceries, gas, and housing, making affordability a key issue in the upcoming midterm elections.

The average rate on a 30-year fixed-rate home loan has risen to nearly 7%, its highest level since January 2025, affecting homebuyers who are waiting for relief from rising mortgage rates.