Especially regarding mortgage rates- folks are paying huge increases in monthly payments.
I’m assuming “to the government” but does it just get held somewhere?
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Interest rate hikes are a response to inflation. Inflation means your money today is worth less than it was last year. As far as banks are concerned, they aren’t getting more money. Putting it another way, if a gallon of gas was $2.00 a gallon five years ago and today it is $5.00 a gallon, and you borrowed $2 from me five years ago and are going to pay it back today, if you paid me $2 I’d be pissed because I lost purchasing power. If you paid me $3 interest on top of the $2, I’m not really making money, you are just paying more to adjust for inflation.
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