Category Credit & Debt

U.S. mortgage rates went up today, hitting an average of 6.80% for a 30-year fixed loan. This jump happened after President Donald Trump revealed a new trade agreement with the United Kingdom, which made investors feel positive about the economy. As investors showed more optimism, it drove up the return on the 10-year Treasury bond—an important factor influencing mortgage rates. Although this development has lessened worries about a recession in the near future, it also means borrowing money for a home just became more costly for homebuyers, at least for the short term.

On May 9, 2025, mortgage rates rose to around 6.80% because of President Trump's new trade deal with the United Kingdom. This rate increase is mostly due to investor optimism after the new agreement, causing a rise in the 10-year Treasury yield. While the trade deal brings hope for a stronger economy and reduces fears of an upcoming recession, higher mortgage rates can make it harder for people to buy homes. For homebuyers, this means increased borrowing costs and potentially tougher decisions on purchasing property, even though the overall job market and economy may benefit from increased trade activity.

Mortgage rates have continued to rise in May 2025, with the average interest rate on a 30-year mortgage now at 6.83%, making it harder for many people to buy homes. This situation is especially challenging because home prices are already very high, and there aren't enough homes available on the market. Part of what's causing mortgage rates to rise is general economic uncertainty: although the Federal Reserve hasn't increased its interest rates this year in an effort to keep the economy stable, it remains cautious about inflation, possible global trade conflicts, and growing worries about an economic downturn. These factors add complexity to decisions about borrowing money and planning for future home ownership.

Mortgage rates have recently increased, adding further pressure to an already challenging housing market. The average 30-year fixed-rate mortgage rose this week to 6.83%, while the average 15-year fixed-rate reached 6.01%. These higher mortgage rates, combined with soaring home prices and a limited number of homes available for purchase, have made buying a home more difficult for many individuals and families. The Federal Reserve, responsible for managing the nation’s monetary policy, has chosen to keep interest rates unchanged so far in 2025. Their cautious approach comes amid ongoing economic uncertainty, concerns about inflation, and worries that trade tensions could push the economy closer to a recession.

Paying off credit card debt can be a challenging yet rewarding process. Credit card debt usually comes with high interest rates, which means that the longer it takes to pay off the balance, the more money you end up owing. To tackle this debt effectively, it’s important to create a budget that prioritizes paying down your credit card bills. One popular strategy is the "avalanche method," where you focus on paying off the card with the highest interest rate first while making minimum payments on the others. Alternatively, the "snowball method" suggests paying off the smallest debts first to build momentum and motivation. No matter which method you choose, staying consistent and making extra payments whenever possible can lead to financial freedom and less stress in the long run.

Debt management refers to the strategies and practices that individuals use to handle their debt effectively, ensuring they can pay it off and improve their financial situation. This involves understanding the types of debt one has—such as credit card debt, student loans, or mortgages—and prioritizing which debts to pay off first, usually starting with those that have the highest interest rates. Effective debt management can also include creating a budget to track spending and finding ways to cut costs, so more money can be directed toward paying down debt. By managing debt wisely, individuals can relieve financial stress, improve their credit scores, and achieve greater financial stability in the long run.