Mortgage repayments in the United States are on the rise again, with the Federal Reserve hiking rates by three-quarters of a percent for the second month in a row
The Fed is trying to push down runaway inflation without creating a recession.
It’s the most dramatic action taken by the Fed since the 1990s, and will impact loan repayments for millions of Americans.
Mortgages, car loans and credit cards will all be impacted.
Markets expected the move after Fed officials telegraphed the increase in a series of statements over recent weeks.
Central bankers say the priority is to bring down inflation, even if it slows down the economy.
Fed Chair Jerome Powell doesn’t believe the US economy is in recession, though growth was negative in the first quarter and was expected to be barely positive in the second quarter.
Mortgage rates have been rapidly climbing since the beginning of 2022, and currently sit at 5.7% for a fixed-rate mortgage.
