The Latest Personal Finance News for September 2025

Mortgage Rates Drop to Their Lowest Point of the Year

Mortgage rates haven't budged much so far this year, but the average 30-year fixed-rate mortgage has reached its lowest point, according to Freddie Mac. As of August 21, the average rate hit 6.58%, which is the lowest point since October 2024.

Why It Matters

The dip in mortgage rates could offer a window of opportunity for homebuyers and refinancers. Even a small drop in interest rates can translate into significant savings over the life of a 30-year loan—potentially thousands of dollars in reduced interest.

For buyers struggling with affordability due to high home prices, a lower rate can also increase purchasing power. While rates remain elevated compared to historic lows, hitting the lowest point in nearly a year may signal a more favorable environment for those waiting to lock in a deal.

What You Can Do

• Stay up to date on the latest average mortgage rates.
• Read more about housing forecasts for 2025.
• Understand how rising interest rates increase mortgage costs.
• Learn how to get a lower mortgage rate.

The Federal Reserve Signals a September Rate Cut

Recent remarks by Federal Reserve Chair Jerome Powell hinted at a new rate cut in the federal agency's September meeting. According to CME Group, there's an 87% chance that the Fed will slash its federal funds rate by 25 basis points.

If implemented, this would be the first time the Fed has cut its interest rate since December 2024.

Why It Matters

If the Fed does implement a rate cut next month, it could lower borrowing costs on credit cards, personal loans, auto loans and even mortgages, potentially boosting consumer demand and economic growth.

As lenders typically link loan pricing to the Fed's benchmark via the prime rate, these lower rates may translate into significant savings, especially for those carrying balances or seeking new financing.

What You Can Do

• Learn about the federal funds rate.
• Understand how the Fed rate cuts impact your finances.
• Look for ways to reduce your risks when borrowing money.

Tariff Impact Starting to Show in Inflation Data

The consumer price index (CPI) rose 0.2% in July, following a 0.3% increase in June. Over the past 12 months, overall inflation remains at 2.7% year-over-year, holding steady from June levels.

Excluding volatile food and energy prices, core CPI rose 0.3% in July, up from 0.2% the previous month. Some experts note that tariffs have finally started to show up, though their impact so far has been modest.

Energy costs, driven by a drop in gasoline prices, fell 1.1% for the month, while food prices were flat overall.

Why It Matters

Even though headline inflation remains above the Federal Reserve's 2% target, the slower monthly increases offer a glimmer of relief.

A calmer inflation environment can ease pressure on household budgets and potentially lead the Fed to take a more gradual approach to future rate hikes. That said, it's still unclear whether recently imposed tariffs will have a lasting or accelerating effect on inflation in the coming months.

What You Can Do

• Check the Bureau of Labor Statistics CPI page on September 11.
• Read up on how inflation works.
• Research ways to fight inflation and save money.
• Understand how inflation impacts your credit card debt.

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^Θ 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.