America in focus: Affordability concerns rise as Fed hikes key rate, mortgage rate reaches nearly 7%
- Posted on September 19, 2026
- By Business News Today
- 1 Views
- 1 min read
In brief
The Federal Reserve's first rate increase since 2023 has escalated affordability pressures across the American economy. With the benchmark rate now hovering near 3.9%, borrowing costs have surged, pushing 30-year mortgage rates to their highest point in nearly two years at 6.95%. This tightening cycle threatens household purchasing power and business investment decisions, as consumers face steeper costs for home financing while inflation remains a persistent concern for economic stability and growth.
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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.
