The Fed keeps interest rates high for now—here's how much money it could be costing you each month

That would bring the benchmark rate down closer to 5% from an upper range of 5.5%, although it would still be a far cry from the near-zero rate through much of 2022.To slow inflation, the central bank has raised interest rates over the past two years to make borrowing more expensive. And it's done just that: Americans have seen their monthly debt payments for mortgages, loans and credit cards increase by hundreds of dollars since the rate hikes began.

To give you an idea of how much more people are paying since the Fed started hiking rates in March 2022, here's a breakdown of the increased monthly costs for various types of debt based on commonly borrowed amounts.In 2022, the average 30-year fixed rate mortgage rate was 4.3%, while the current rate is 6.9%, per Mortgage News Daily. For a mortgage loan of $330,000, monthly payments have gone from $1,633 to $2,173.$30,000 line of credit was 4.3%, while the current rate is 9.

In 2022, personal loans with fixed repayments over five years had an average interest rate of 12.6%, while the current rate is 19.8%, according to Credible. For a loan of $11,000, monthly payments have risen from $248 to $290.In 2022, new auto loans had an average interest rate of 5.2% while the current average is 7.3%, per Edmunds data. For a 60-month financing of around $40,000, monthly payments have increased from $759 to $798.In 2022, the average credit card interest rate was 16.

"I have a number of young clients for whom current interest rates have made purchasing their first homes not viable," says Tipiwa Walker,On the flip side, the Fed's benchmark rate affects savings interest rates, too. This means the earnings on high-yield savings accounts, certificates of deposit and money market accounts with interest rates currently near 5% will likely decline.

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Fed holds interest rates steady at 23-year high, but opens the door to reducing ratesFederal Reserve policymakers on Wednesday voted to hold interest rates steady, keeping borrowing costs elevated for millions of households and businesses.
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