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Forbes
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Q1 2025 Wrapped: What’s Changing In Credit, Mortgages And Consumer Spending
- In 2025, Americans are facing financial pressures with high inflation, costly borrowing, and low personal savings rates.
- Savers have the opportunity to lock in higher rates with some banks offering CDs yielding over 4.5%.
- National average CD rates have remained stable, with variations based on Federal Reserve policies and bank strategies.
- Treasury yields have fallen, but the future direction depends on the Fed's monetary policy decisions.
- Consumers are advised to consider the timing for locking in rates with CDs and Treasury bills based on upcoming rate changes.
- Credit card interest rates are near record highs, making it crucial for consumers to pay off balances promptly.
- Lenders have tightened credit standards, impacting access to financing for consumers with lower credit scores.
- Household debt in the U.S. is increasing, with mortgages comprising a significant portion, posing financial challenges for many households.
- The housing market is cooling, but prices continue to rise modestly, influenced by factors like inventory levels and economic conditions.
- Mortgage rates are a significant factor for buyers and homeowners, with refinancing opportunities available for those willing to seize them.
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