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.