Fed makes largest rate hike in nearly 30 years

​​WASHINGTON – The Federal Reserve has raised its key interest rate by three-quarters of a point—its largest hike since 1994.

"The increase is in response to continued high inflation," said Dr. Harold Hunt, research economist with the Texas Real Estate Research Center. "This is intended to help dampen inflation by cooling demand. Guidance from the Fed calls for further rate increases, which is likely to translate into increased mortgage rates through at least the end of this year."​

The Associated Press reports that "borrowing costs have already risen sharply across much of the U.S. economy in response to the Fed’s moves, with the average 30-year fixed mortgage rate topping 6 percent, its highest level since before the 2008 financial crisis, up from just 3 percent at the start of the year.

"The yield on the two-year Treasury note, a benchmark for corporate borrowing, has jumped to 3.3 percent, its highest level since 2007."