The Latest Personal Finance News for June 2025

Here's the latest personal finance news, how it may impact your financial plan and what you can do to maintain your financial well-being.

Mortgage Rates Top 7% Again as Existing Homes Sales Slow

The average interest rate for a 30-year fixed-rate mortgage climbed above 7% on May 21, according to Mortgage News Daily. Experts note that the increase was due in part to Moody's Ratings downgrading U.S. federal debt from its perfect rating.

Ten-year Treasury bond yields, which serve as a benchmark for mortgage rates, have also risen as investors worry about further national debt created by the Trump administration's proposed tax bill.

The recent increase comes after existing home sales in April sunk to the slowest pace since 2009, declining by 0.5% from March.

Why It Matters

Mortgage interest rates have been uncomfortably high for nearly three years, disrupting the housing market and pushing mortgage payments to unaffordable levels for many prospective homeowners.

While the current average mortgage rate isn't much higher than the 6.6% low so far this year, potential homebuyers and existing homeowners looking to refinance may not get much relief anytime soon.

What You Can Do

April Inflation Lower Than Expected, but Tariffs Loom Large

The consumer price index (CPI) came in lower than expected in April. Overall, prices increased 0.2% from March and 2.3% from a year ago, the lowest 12-month increase since February 2021. Additionally, the core CPI, which excludes volatile food and energy prices, came in at 2.8%.

However, economic experts are waiting to celebrate as the impact of tariffs put into effect in early April is not yet clear. Some anticipate that the inflation rate will gradually pick up in the near future as tariffed goods finally make it to shelves and businesses adjust prices.

Why It Matters

The latest inflation numbers are encouraging, but it remains uncertain how much of an impact it will have on consumers in the long run. With unpredictability reigning, it's unlikely that the Federal Reserve will lower interest rates in its June meeting.

What You Can Do

Buy Now, Pay Later Borrowers Increasingly Falling Behind on Payments

Buy now, pay later (BNPL) loans have become incredibly popular among consumers with lower credit scores and higher debt balances. According to the Consumer Financial Protection Bureau, 63% of borrowers have carried multiple loans at the same time.

In its recent quarterly report, popular BNPL provider Klarna said that consumer losses grew 17% from the first quarter of 2024, reaching $136 million. That's just 0.54% of the total money loaned out during the quarter, but it's also nearly 20% of the lender's total revenue for the same time period.

Why It Matters

BNPL loans can be an easy way to finance small purchases, and many services don't require a hard credit check, making them more attractive to borrowers with less-than-stellar credit.

However, while on-time payments don't generally influence your credit score, missing payments can harm your credit and make it more challenging to qualify for affordable credit when you need it.

What You Can Do

Income-Driven Repayment Applications Are Pending for Nearly 2 Million Borrowers

In a recent court filing, the U.S. Department of Education admitted that 1,985,726 income-driven repayment (IDR) plan applications were on hold as of April 30.

The federal agency also noted that just 79,349 applications were decided (either as approvals or denials) during the month of April, following its decision to reopen applications after shutting them down in February.

Why It Matters

According to the Office of Federal Student Aid, it typically takes 30 days to process an IDR plan application. However, based on the rate of approvals for the month of April, it would take more than two years for some borrowers to get a decision.

If you're a student loan borrower seeking relief through an IDR plan, you may need to consider other alternatives while waiting for a response from your loan servicer.

What You Can Do

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining a good credit score can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO® Score and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.

What makes a good credit score?

Learn what it takes to achieve a good credit score. Review your FICO® Score for free and see what’s helping and hurting your score.

Get your FICO® Score

No credit card required

Promo icon.

About the author

Ben Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.

Read more from Ben

Explore more topics

Share article

Experian's Diversity logo.
Experian’s Diversity, Equity and Inclusion
Learn more how Experian is committed
Download from the Apple App Store.Get it on Google Play.