Fed Hikes Rates

The Federal Reserve raised its benchmark interest rate by a quarter point and signaled another increase could come later this year if inflation stays high. The move extends the Fed’s fight to slow price growth, after its first increase in more than three years. Economists say longer-term borrowing costs now reflect more than Fed policy alone. Steady growth, sticky inflation, oil pressure, geopolitical tension and heavy federal borrowing have pushed yields higher. Mortgage rates have climbed above 6.95%, squeezing buyers already facing high prices. Would-be buyers describe the market as discouraging and, for some, emotionally draining. Sales may keep slowing if financing stays unaffordable.