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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Haven’t seen this in the other comments so far so just wanted to add that (in the US) most people’s mortgage interest rates do not change from whatever it was when they got the mortgage. About 90% of US mortgages are FIXED RATE loans, meaning that your rate remains the same for the duration of the loan and is not impacted by the Fed’s key interest rate or the current rate the bank is charging on new loans.
The other ~10% are ADJUSTABLE RATE mortgages and, as others have explained, the increased payments resulting from a rate increase would go to whoever holds the mortgage, not the Federal Reserve or the US Treasury.
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