Interest rate hikes cause financial turmoil for consumers and banks.

The Federal Reserve's yearlong blitz of interest rate hikes has increased loan costs for mortgages, car loans, and credit cards, putting a strain on the budgets of US households. The average 30-year fixed-rate mortgage rate stands at 6.6%, a sharp increase from a year ago, when it registered at 4.6%. However, some loan costs have ticked down slightly since the onset of the banking crisis in response to renewed recession fears, suggesting that relief for borrowers could arrive in the coming months but alongside a possible economic downturn.