Rising Interest Rates Squeeze Consumers
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Savers benefit from higher interest rates on savings accounts, CDs, and money market funds, but rates are rising more slowly now.
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Borrowers face bigger bills on credit cards, student loans, and other variable rate debt as rates rise. Average credit card rates are now over 20%.
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Mortgage rates have surged above 7% on average, the highest in over 2 decades, hitting housing affordability.
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Car loan rates are up slightly, but high prices and tighter credit are also damping auto sales.
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Federal student loan rates rose for new loans, but existing federal loan payments are still paused until 2024 for most borrowers.