US Mortgage Rates Exceed 7% for First Time in 20 Months

US mortgage rates have topped 7% for the first time in 20 months, according to federal lender Freddie Mac. This milestone marks a new challenge for the housing market, which has already been dealing with high interest rates and low supply for years. The increase in mortgage rates is a direct result of the Federal Reserve's decision to hike interest rates, which was announced recently. The Fed's decision to raise interest rates was made in response to high inflation. The last time the Fed raised interest rates was in 2023. The current rise in mortgage rates is expected to affect Americans who are already struggling with high prices and stagnant wages. The housing market has been enduring low supply and high interest rates for an extended period, and this latest development may exacerbate the situation. As mortgage rates continue to rise, it may become even more difficult for people to purchase or refinance homes. The Federal Reserve's actions are aimed at combating inflation, but they can also have a significant impact on the housing market and the overall economy.