The lesser-known reason why borrowers are paying more than they have in years.
at their highest level in more than two decades. The average rate for credit card holders tops anything on record at thePain-inducing interest rates for just about any loan, experts said, trace to an underlying trend: Rapidly rising U.S. government bond yields.
Since last year, the Fed has put forward an aggressive series of interest rate hikes as it tries to slash price increases by slowing the economy and choking off demand. "This more aggressive move in bond yields has coincided with a realization and grudging acceptance that the Fed is going to be keeping interest rates higher for longer and won't be cutting them anytime soon," Edward Marrinan, a credit analyst at SMBC Nikko Securities America, told ABC News.
When the Fed initiated the rise of bond yields with its first rate hike of the current series in March 2022, the average 30-year fixed mortgage stood at just 4.45%.
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Credit card interest rates highest in at least 38 yearsZachary Halaschak is an economics reporter at the Washington Examiner. Before moving to Washington, he worked in Alaska, covering politics, government, and crime for the Ketchikan Daily News. While there, Zach won the Alaska Press Club’s second-place award for best reporting on crime or courts for his coverage of a local surgeon’s alleged murder. He graduated from the University of Richmond in 2017 and is originally from Marco Island, Florida.
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