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Mortgage rates are nearing 7% as inflation ticks back up: Freddie Mac

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The 30-year fixed-rate mortgage averaged 6.88% this past week, according to Freddie Mac.  (iStock )

Mortgage rates continue their steady climb upward. Rates for 30-year mortgages averaged 6.88% this past week, Freddie Mac reported. Rates last week averaged 6.82%, and a year ago, the 30-year fixed-rate mortgage averaged 6.27%.

“Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path,” Sam Khater, Freddie Mac’s chief economist said.

Borrowers looking for 15-year mortgages also saw average rates go up this week. The average 15-year rate was 6.16%, up from last week when it averaged 6.06%. Inflation is pushing these rates higher, but the beginning of the spring buying season is also bringing more demand, adding to the rising rates.

“It’s clear that while the trend in inflation data has been close to flat for nearly a year, the narrative is much less clear and resembles the unrealized expectations of a recession from a year ago,” Khater said.

Visit an online marketplace like Credible to compare rates, choose your loan term, and get preapproved with multiple lenders.

SPRING HOMEBUYING SEASON BRINGS SLIGHTLY MORE OPTIMISM AS LISTINGS CONTINUE TO RISE

Monthly mortgage payments just hit an all-time high

Mortgage interest rates are adding to the overall cost of getting a mortgage. According to data from Redfin, over the period of four weeks ending April 7, the average mortgage payment was $2,747, an all-time high.

“For homebuyers, the latest CPI report means mortgage rates will stay higher for longer because it makes the Fed unlikely to cut interest rates in the next few months,” Redfin Economic Research Lead Chen Zhao said.

High sale prices on homes contribute to overall high costs as well. The median sale price in April is $378,250, which is up 4.5% year over year. This is just $5,000 less than the record high in June 2022. With demand also rising, prices are likely to stay high for the near future. A potential increase in houses for sale could bring some relief, though.

“Housing costs are likely to continue going up for the near future, but persistently high mortgage rates and rising supply could cool home-price growth by the end of the year, taking some pressure off costs,” Zhao said.

As more homes come on the market, you have more homebuying options. Make sure you’re ready with the right mortgage lender and rate. Head to Credible today to compare rates and lenders in minutes.

HOME LISTINGS ARE RISING, BUT BUYERS AREN’T BUYING DUE TO HIGH INTEREST RATES

Homeowners insurance expected to rise 6% this year

Adding on to the list of high housing costs — homeowners insurance costs aren’t expected to drop anytime soon.

Homeowners insurance rates are projected to go up by 6% in 2024, according to an Insurify study. This means rates could end the year at $2,522, on average. Rates have steadily been rising over the years. Annual rates increased by 19.8% between 2021 and 2023, going from $1,984 to $2,377, on average. Increases largely affected states that dealt with more frequent natural disasters.

Floridians pay the most for their home insurance policies, averaging an annual rate of $10,996 in 2023. Florida’s homeowners are likely to see a 7% increase in 2024 and will pay an average of $11,759 annually. The state with the second-highest home insurance rates is Louisiana. 

The average homeowner in Louisiana pays $6,354 annually. Currently, residents don’t have the highest rates in the country, but after the projected 23% hike expected in 2024, this may change.

Credible can walk you through each homeowner’s insurance policy and coverage. Plus, they can tell you how to save hundreds on homeowners insurance each year.

HOME INSURANCE COSTS ARE HIGHEST IN THESE STATES – HERE’S HOW TO LOWER YOUR PREMIUMS

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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Key AI hub China restricts schoolchildren’s use of the tech

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A student is playing chess with an intelligent robot in Xuzhou City, Jiangsu Province, China on May 13, 2025.

Cfoto | Future Publishing | Getty Images

BEIJING — China’s latest education policies for the year restrict the extent to which children can use generative artificial intelligence in the classroom, according to a local government report on Thursday.

The guidelines cited in the report, which weren’t publicly available, covered AI education and generative AI use in primary and secondary schools during 2025.

China’s Ministry of Education did not immediately respond to a request for comment.

Primary school students are prohibited from using unrestricted generative AI tools on their own, although an instructor may use the tech to assist with teaching, according to the local government report.

It added that middle schoolers can explore how generative AI reasons and analyzes information, while high schoolers are allowed to use the tech more broadly.

The report said the policies banned students from directly copying AI-generated content into homework and called on schools to establish a list of approved generative AI tools that can be used on school grounds.

The People’s Daily, the official newspaper of the ruling Chinese Communist Party, mentioned the new guidelines on the sixth page of its Thursday edition.

But the national state media report did not discuss specific limits on AI use, and instead focused on how the policies aimed to promote “scientific” and “standardized” promotion of AI education suited to various stages of education, according to a CNBC translation.

Use of generative AI in China has increased significantly after DeepSeek, a homegrown rival to OpenAI, in late January released a chatbot app. Tencent, ByteDance and other companies have released similar chatbots that have surged in popularity in China. 

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Steve Cohen says stocks could retest their April lows, sees a 45% chance of recession

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Warren Buffett tells WSJ he stepped aside as CEO after finally feeling old

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Warren Buffett does a walkthrough of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.

David A. Grogen | CNBC

Age isn’t just a number for Warren Buffett after all.

The 94-year-old investment legend recently surprised shareholders by announcing his intention to step down as Berkshire Hathaway CEO after an epic 60-year run. The reason behind the decision was the physical effects of aging he’s been experiencing, Buffett said in a new interview with the Wall Street Journal.

“I didn’t really start getting old, for some strange reason, until I was about 90,” he told the Journal in a phone interview. “But when you start getting old, it does become—it’s irreversible.”

The Oracle of Omaha, who turns 95 in August, revealed to the paper that he started to lose his balance occasionally, while experiencing issues remembering someone’s name sometimes. His vision also turned less clear when reading newspapers.

It marked an end of an era at Berkshire, which was a failing New England textile mill six decades ago and was transformed into a one-of-a-kind conglomerate with businesses ranging from Geico insurance to BNSF Railway. Buffett is handing over his reins on a high note as Berkshire shares are near a record high, giving the conglomerate a market cap of nearly $1.2 trillion.

Berkshire’s board voted unanimously to make Greg Abel, now vice chairman of noninsurance operations,  president and CEO on Jan. 1, 2026, and for Buffett to remain as chairman.

Still, Buffett said he remains mentally sharp to make investment decisions when opportunities arise. The value investing icon is known to take advantage of market turmoil and depressed prices to make big purchases.

“I don’t have any trouble making decisions about something that I was making decisions on 20 years ago or 40 years ago or 60 years,” he told the Journal. “I will be useful here if there’s a panic in the market because I don’t get fearful when things go down in price or everybody else gets scared….And that really isn’t a function of age.”

— Click here to read the original WSJ story.

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