US Mortgage Rates Hit Near 7% Amid Fed Rate Hike

Mortgage rates have surged to nearly 7% in the US, marking the highest level in over a year and a half. This comes after the Federal Reserve raised its benchmark interest rate by a quarter point to a range of 3.75% to 4%. The increase is part of the Fed's efforts to tame inflation.

The rise in mortgage rates has significant implications for homebuyers, who will now face higher borrowing costs. According to Freddie Mac, the average 30-year fixed rate has risen to 6.95%, up from 6.26% a year ago.

Tanya Sushkova, senior loan officer with Cornerstone Mortgage, notes that buyers will need to adjust their budgets as mortgage rates increase. 'The same amount of mortgage is costing more than it was in the beginning of the year,' she said.