If you've noticed borrowing feels pricier lately, you're not imagining it.
The US is dealing with stubbornly high interest rates, thanks to ongoing inflation, heavy government borrowing, and big investments in artificial intelligence (AI).
With government borrowing up and Treasury yields rising, things like 30-year mortgage rates have jumped to nearly 7%, a huge leap from the ultra-low rates during the pandemic.
Fed raises main rate Wednesday
Tech companies are pouring money into AI, which means they're relying more on loans and pushing up demand for cash.
Meanwhile, inflation has been outpacing wage growth for months, so paychecks aren't stretching as far.
The Federal Reserve raised its main rate on Wednesday. It's weighing its next moves on short-term rates.
Add in higher energy prices and global tensions, and it looks like higher borrowing costs might stick around until inflation finally cools off.