Fed Rate Hike Sparks Mortgage Rate Surge

The Federal Reserve has raised its benchmark interest rate to a range between 3.75% and 4%, marking the first time in over three years that rates have been increased.

The decision, made by Fed Chairman Kevin Warsh, aims to combat high inflation, which is expected to remain above the 2% target until 2029.

Mortgage rates are likely to continue rising due to the central bank's move, with experts predicting that they will stay above the 7% threshold, making it harder for prospective buyers to afford homes.