The Federal Reserve raised interest rates again in early May, and mortgage rates have responded by climbing. The average interest rate on 30-year mortgages rose to 6.66% this week, up from 6.58% last week, according to Bankrate’s national survey of large lenders.
The Fed has been acting aggressively to control inflation, raising rates at 10 consecutive meetings dating to early 2022. Those moves, including last week’s announcement of a widely expected increase of a quarter point, have created upward pressure on rates while also intensifying the risk of a recession.
While its moves are influential, the Fed doesn’t directly set fixed mortgage rates. The most relevant benchmark is the 10-year Treasury yield, which also has bounced around in recent weeks.
