Category Credit & Debt

As of May 11, 2025, mortgage rates in the U.S. remain high, averaging about 6.70% for a 30-year fixed-rate loan. Experts say this increase is related to uncertainty about both economic and political issues. These concerns include ongoing disagreements about trade tariffs with other countries, cautious policies by the Federal Reserve, and difficulties in the housing market, where homes are expensive and there aren't enough for sale. High mortgage rates mean it's harder for many people to buy homes or refinance their current mortgages. For homeowners thinking about refinancing, experts suggest doing so only if the new interest rate significantly lowers monthly payments and provides clear financial benefits.

As of May 11, 2025, mortgage rates remain high at around 6.70%, mainly due to concerns over global economic uncertainty and political changes in the U.S. These higher rates are affected by unresolved issues involving international trade, especially tariffs, because investors are cautious about what will happen next between major economic powers like the U.S. and China. Compared to the historically low mortgage rates during the pandemic, today's homeowners and homebuyers are facing significant financial challenges, influenced by ongoing inflation and cautious decisions from the Federal Reserve. Families looking to buy or refinance their homes now must carefully weigh their options in a complicated financial environment.

Buy Now, Pay Later (BNPL) services have grown popular among Gen Z consumers as inflation and economic uncertainty reshape spending habits. With BNPL, consumers split payments into smaller installments without high credit card interest, making costly items seem easier to afford. Recent studies show about 44%—around 30 million young Americans—used these services last year. While BNPL provides flexibility, financial experts caution that it can encourage overspending and debt, particularly for younger individuals who may not fully understand long-term financial risks.

On May 10, 2025, mortgage rates were around 6.70% due to uncertainty after a new trade deal between the U.S. and the United Kingdom. Mortgage rates are impacted by international trade and tariff discussions because tariffs can lead to higher inflation, causing rates to rise. However, higher tariffs can also slow the economy, which can push rates lower. Due to this push-and-pull, mortgage rates remain uncertain, leaving prospective homebuyers unsure about what to expect later in the year.

The ongoing trade tensions between the United States and China continue to impact American consumers, especially those looking to buy or refinance homes. Currently, mortgage interest rates are around 6.70%, reflecting the uncertainty created by trade talks and tariff negotiations. Although a recent trade agreement with the UK brought hope of economic stability, mortgage rates have still risen slightly due to worries about China's declining exports to the US. Experts suggest that tariffs on goods from China can contribute to higher inflation, causing further increases in mortgage rates. Continued uncertainty over US-China trade relations means consumers should carefully consider their timing and financial readiness when planning major financial decisions such as purchasing or refinancing homes.

Mortgage rates have risen slightly, with the 30-year fixed rate now at 6.95%, continuing recent weeks' uncertainty in the housing market. Experts attribute this rate increase to the Federal Reserve, the government group responsible for setting interest rate policies. After lowering rates three times in 2024, the Fed has decided to keep borrowing rates steady throughout most of 2025. Because mortgage rates are closely tied to these interest rate decisions, borrowers looking to buy or refinance homes will likely face fluctuations and higher costs in the near future.