The Federal Reserve just raised interest rates the most since 1994 to help dampen inflation, but its policies may end up fueling, not crimping, a chief component of consumer price increases: the cost of rent.
Here’s why: As mortgage rates surge to an average of nearly 6% and home values keep climbing, all-in payments are rising by hundreds of dollars a month. A growing number of US consumers are getting priced out of homeownership. Instead of buying, more of them feel financially compelled to rent, which drives up that price as well.
