Fed's Rate Hike Spreads: Housing Squeezed, Consumer Pain Reaches Upper Incomes, and Wall Street Braces for More

The Fed's benchmark rate sits at 3.75%-4.00% after Wednesday's unanimous 25 bps hike — but the real pain is showing up downstream. The average 30-year mortgage rate surged to 6.95%, the highest since January 2025, climbing for 11 consecutive weeks as bond yields spike on persistent inflation. The U.S. Misery Index, which combines unemployment and inflation, ticked to 7.50 — up 4.17% from a year ago.

Behind the Data

This isn't a routine cycle. RSM...