Category Credit & Debt

Mortgage Rates Soar Amid Inflation Worries and Policy Uncertainty

As of June 10, 2025, mortgage and refinance rates remain unusually high, with the average 30-year fixed mortgage rate reaching 6.862%. This increase has occurred because inflation isn't dropping as quickly as experts had previously hoped, causing the Federal Reserve to keep interest rates elevated, despite earlier expectations of rate cuts. Many people also worry that economic policies proposed by President Trump, such as tariffs, tax cuts, and deportations, could make inflation worse, raise government debt, and possibly result in job losses. With these concerns in mind, financial experts advise individuals to stay focused on personal decisions—like budgeting carefully, minimizing debt, and saving regularly—to remain financially stable in uncertain economic times.

Senate Showdown: Student Loans, Debt Relief, and America’s Future

In June 2025, the Senate began debating major changes to federal student loan policies, which could shift how borrowers repay debt and qualify for loan forgiveness. A key part of the proposal would end the SAVE (Saving on Valuable Education) program introduced by President Biden in 2024. Under SAVE, millions of borrowers have enjoyed lower monthly payments and shorter timelines for loan forgiveness. The new Student Success and Taxpayer Savings Plan would replace SAVE with a less generous plan, meaning students would likely pay higher monthly amounts and have to wait up to 30 years for their debts to be forgiven, compared to 20 or 25 years under SAVE. This debate reflects deep disagreements about balancing student support and government spending in a complicated economic environment.

Mortgage Rates Surge Above 7%, Fueling Housing Market Uncertainty

Mortgage rates have recently risen above 7%, making buying a home even more challenging for many Americans already facing high prices. At the same time, people are spending less on goods and only slightly more on services, indicating a cautious economic mood. Additionally, political uncertainty around housing policy, including former President Trump's proposal to potentially make Fannie Mae a private company again, could affect future mortgage rates and home affordability. These developments highlight growing economic concerns and uncertainty around the housing market's future.

2025 Shoppers: Prioritizing Memories, Embracing ‘Doom Spending’ Amid Economic Uncertainty

In 2025, younger consumers are shifting their spending habits towards experiences rather than material goods, even though the economy remains uncertain. Recent studies indicate that nearly a third of young shoppers plan to spend more on activities that create fun, lasting memories over the next few years. At the same time, a notable trend called "doom spending" has emerged, where 30% of this younger group admit they are purchasing items even when worried about their financial future, noticeably higher than the national average of 21%. These changes are happening during a time when the Federal Reserve has lowered interest rates, making borrowing cheaper and influencing people's choices about saving and spending money.

Mortgage Rates Ease Slightly After Months of Highs, But Don’t Expect Pandemic Lows

After months of staying near 7%, mortgage rates have recently begun to decrease slightly. While many people expected mortgage rates to drop sooner due to actions by the Federal Reserve, rates stayed stubbornly high, surpassing the 7% mark earlier this year. Today's rates represent a sharp spike compared to the record-low rate of 2.65% seen in January 2021 when the government aimed to support the economy during the COVID-19 pandemic. Experts now suggest that rates will probably not return to such low levels anytime soon, but we may see them stabilize closer to around 6% in the near future.

Mortgage Rates Dip Amid Economic Worries, Yet Homebuyers Still Struggle

Mortgage rates recently decreased slightly due to rising unemployment and worries about the economy. The average rate for a 30-year fixed mortgage dropped to 6.90%, down from the previous week, providing some relief for people looking to buy homes. Additionally, refinance rates also went down to 7.09%. However, buyers are still facing difficulties due to continuing high home prices and not enough houses listed for sale. The Federal Reserve is watching the situation closely and may make further decisions depending on how the economy performs.

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