The Fed just hiked interest rates again: Here's how payments compare to 2022

INTEREST RATES - (Tom Williams/CQ-Roll Call, Inc via Getty Images)

To combat runaway inflation, the Federal Reserve started raising interest rates in March of last year, just 17 months ago.

But now, considering the latest interest hike of a quarter point on Wednesday, what's the difference in the cost of things we finance or charge?


Before the rate hikes, a homebuyer who borrowed $400,000 for 30 years at a fixed rate, paid a mortgage of $2,504.

Before the Wednesday hike, the mortgage had rocked up to $3,527.

$400,000, 30 Year Fixed
2/22: $2,540 
7/23: $3,527


Car buyers who financed $40,000 got a pre-hike monthly payment of $747. Now, the payment is $852.

Used car loans are even higher.

New Car, $40,000 Financed
2/22: $747
7/23: $852


Credit card holders with the average national balance of $5,500, would have to pay $277 a month to pay it off in two year. Now, it would take $292 to do the same.

That assumes you charge nothing else.

$5,550, Average U.S. Balance
2/22: $277
7/23: $292

The latest increase will raise all these prices a bit more, but it's too early to tell exactly how much.


Federal Reserve raises key interest rate for 11th time by a quarter-point in effort to slow inflation

The Federal Reserve raised its key interest rate Wednesday for the 11th time in 17 months, a streak of hikes that are intended to curb inflation but that also carry the risk of going too far and triggering a recession.