Fed Rate Hike Hits Homeowners as Mortgage Rates Near 7%

The Federal Reserve raised its benchmark interest rate to about 3.9% for the first time in three years, signaling another potential hike to 4.1% later this year.

This move aims to combat stubbornly high inflation, which is impacting households and businesses across America.

Americans are already struggling with high costs for groceries, gas, and housing, making affordability a major concern ahead of the upcoming midterm elections.

The benchmark 30-year fixed-rate mortgage rose to 6.95%, its highest level in over 19 months, after four consecutive weeks of increases.