From Seattletimes · · 1m 20s
Fed Rate Hike Sparks Mortgage Rate Surge
Fed rate hike pushes mortgage rates to nearly 7% as affordability concerns rise.
In brief
Fed rate hike pushes mortgage rates to nearly 7% as affordability concerns rise. The Federal Reserve raised its key rate to 3.9% for the first time since 2023, causing 30-year fixed mortgage rates to climb to 6.95%, the highest level in over 19 months. Originally reported by Seattletimes.
Fed Raises Key Rate
The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly high inflation.
Mortgage Rates Reach Nearly 7%
The weekly average rate on a 30-year fixed-rate home loan climbed to 6.95% from 6.76% last week, its highest level in over 19 months.
Fed Signals Second Rate Hike
The Fed signaled its rate-setting committee could raise the key rate a second time to 4.1% later this year.
Affordability Concerns Rise
Rising costs for groceries, gas and housing are impacting household and business decisions as affordability takes on a leading role in upcoming midterm elections.
Retail Sales Climb
Retail sales rose 1.2% in August after a revised 0.5% dip in July, beating economists' expectation of a 0.7% gain.
Unemployment Claims Fall
Jobless claims slid to 196,000, the fewest since mid-July and down from 206,000 the previous week.
Wall Street Stumbles
Wall Street closed with mixed results as the S&P 500 was virtually unchanged while the Dow Jones Industrial Average fell.
What it means
The Federal Reserve raised its key rate to 3.9% for the first time since 2023, causing 30-year fixed mortgage rates to climb to 6.95%, the highest level in over 19 months.
