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By Kristin Myers, Editor-in-Chief

What's Happening Today

Retail and food sales fell for the first time this year as some consumers are pulling back on spending amid rising prices for consumer goods and services. According to the latest figures from the Census Bureau this morning, retail sales declined 0.3% last month, in contrast to an increase of 0.1% expected by economists.

However, even with the decline, retail sales were up 8.1% since May of last year, as demand for goods and services jumped with easing pandemic restrictions. May sales were dragged down by a big drop in auto and auto parts sales, which dipped 3.5% compared to April. Meanwhile, sales at gasoline stations jumped 4%, as gas prices soared to record levels.

As inflation impacts consumer spending habits, Federal Reserve policymakers will decide today how aggressive the central bank will get in fighting rising costs. After inflation jumped more than expected in May as shown by the Consumer Price Index last week, stock market experts are betting that the central bank will hike rates by 75 basis points, or three-quarters of a percentage point. If they don't, it may cause volatility in the markets as investors grow concerned about the Fed's ability to bring down inflation.

While higher interest rates is a good thing because it helps cool inflation, it also makes loans more expensive. Mortgage rates have climbed, with the average rate on a 30-year fixed mortgage surging over 6.5%, according to data collected by The Balance. That has been weighing on homebuyer interest, and homebuilder confidence. The NAHB/Wells Fargo U.S. Housing Market Index fell two points this month from 69 in May to 67 in June, in the sixth straight month of declines for the index.

- Kristin

Editors' Picks

Retail Sales Fall As Inflation Dogs Consumers (The Balance)

US Home Equity Hits Highest Level on Record—$27.8 Trillion (The Wall Street Journal)

Biden Tells US Oil Refiners Record Profits Are 'Not Acceptable' (Bloomberg)

Crypto Firms Quake as Prices Fall (The New York Times)

Ellyce Fulmore On The Costs of Being Queer (The Balance)

How Do US Laws Protect LGBTQ Homebuyers From Discrimination? (The Balance)

How To Recognize Reverse Mortgage Scams (The Balance)

Off the Charts

The average credit card interest rate for purchases is now 20.65%, down slightly from the previous month's 20.66%, according to May data collected by The Balance. Store credit cards had the highest average interest rate at 24.57%.

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Number of the Day

$1,062 - That's how much more a typical homebuyer must pay each month now than the last time 30-year mortgage rates were this high—all because of higher home prices.