The Economic Times

America in focus: Affordability concerns rise as Fed hikes key rate, mortgage rate reaches nearly 7%

The US economy remained in focus as inflation, borrowing costs and consumer spending has been shaping the outlook for households and businesses. The Federal Reserve raised its benchmark interest rate for the first time since 2023, taking it to about 3.9% and signalling another hike could follow. Mortgage rates also climbed, with the average 30-year fixed rate reaching 6.95%, its highest level in more than 19 months.