Fed Officials Eye Higher Rates Amid Persistent Inflation Fears

The Federal Reserve officials are considering raising interest rates if inflation continues to be high. According to minutes from the Fed's July meeting, many officials think that higher rates will be necessary to control inflation.

The recent data shows some signs of cooling in inflation, but gas prices have rebounded due to renewed hostilities in the Middle East. As a result, investors are not expecting the Fed to raise rates at its next meeting in September, but may lift them in December instead.

The mortgage rates have been rising this year, limiting homebuyers' purchasing power and leading to sluggish U.S. home sales. Despite a recent pullback, the average long-term U.S. mortgage rate remains higher than last year, with a 30-year fixed rate at 6.65%.