WASHINGTON, D.C. (KERO) — The Federal Reserve is expected to raise interest rates this week. The move is an effort to control surging inflation rates.
Economists expect a quarter-point increase. The last rate hike was in 2018.
The impact of inflation in some form is hitting just about everyone. And it's not just interest rates but mortgage rates are rising too just ahead of the busy spring real estate market.
The mortgage company Freddie Mac reports the 30-year-fixed rate averaged 3.85 percent last week. That's up .11 percent from the week before.
Analysts say the war in Ukraine is causing percentages to climb because of market instability and the threat of supply shortages. Also, a major factor is continued fears of rising inflation.
As home prices rise many people are moving to other locations in search of lower rent. Zillow experts say people are mostly moving from major U.S. cities into the sunbelt states for more low-cost options.
But this mass exodus has started to drive rent up in what used to be more affordable cities. Cities with the highest increases in rent prices include Phoenix, Miami, and Tampa. They've all seen an increase of over 25 percent in the past year.