Blog > Interest Rate Updates for MA and RI
Interest rates are a hot topic these days, and for good reason—they affect everything from your mortgage payments to credit card bills and even the broader economy. As of July 2025, here’s what’s going on:
Where Are Interest Rates Now?
The Federal Reserve (the Fed) in the U.S. has kept rates relatively high through the first half of 2025. The current federal funds rate hovers around 5.25% to 5.5%. This is a continuation of the Fed’s efforts to tame inflation, which spiked in previous years but has started to cool down.
Why Are Rates Still High?
- Inflation: Even though inflation has eased somewhat, it’s still above the Fed’s target of 2%. High rates help slow down price increases by making borrowing more expensive.
- Economic Growth: The North American economy remains resilient, with low unemployment and steady consumer spending. The Fed is cautious about lowering rates too soon and risking another inflation spike.
What Does This Mean for You?
- Mortgages: Mortgage rates are still elevated, often above 6.5% for a 30-year fixed loan. This makes buying a home more expensive, leading some buyers to wait for potential rate cuts.
- Savings: On the flip side, savings accounts and CDs are offering some of the best yields in years—good news if you’re a saver!
- Credit Cards: Interest on credit card balances remains high, so it’s wise to pay down debt where possible.
What’s Next?
Many experts predict that the Fed may begin to lower rates later in 2025 if inflation continues to cool and the economy shows signs of slowing. However, rate cuts are likely to be gradual and cautious.
In short: We’re still in a high-rate environment, but change could be on the horizon. If you’re making big financial decisions—like buying a home or refinancing—keep a close eye on Fed announcements and economic news.
Want a deeper dive or tips on navigating high rates? Let me know, and I can create a full blog post with strategies for buyers, sellers, or investors!
