Does this rate not also cause personal mortgages to rise, due to the increase? This effects monthly payments, on already agreed contracts, which makes homeowners struggle, no?
In the US almost all mortgages are fixed rate, so the monthly payments don't change. The interest rate does not change for the life of the mortgage, often 30 years. Because a mortgage can be refinanced, this causes a downward ratchet on interest rates for mortgages over time. This is one of the ways in which a mortgage is a hedge against inflation and rising costs. There are tens of millions of Americans with a mortgage rate in the 2.5-3.5% range because the mortgages pre-date the current rise in interest rates.
What this does impact is the ability of people to move houses, since a new mortgage would be priced to current market conditions.
