Sen. Elizabeth Warren (D-Mass.), on Wednesday, highlighted concerns that rising rates are hurting consumers, who are footing the bill for Trump’s reckless policies.
Higher Yields Make Everything Expensive
In a post on X, Warren said that higher yields have made mortgages more expensive, car loans costlier, and pushed credit card interest rates higher. She added, “Trump promised to lower costs,” but “His reckless agenda is doing the opposite.”
The 30-year Treasury yields spiked to 5.20%, the highest level since 2007, reviving comparisons to the pre-financial-crisis era and sharpening fears of higher borrowing costs rippling through household budgets, according to the senator.
Housing Affordability Concerns Surge
The 30-year fixed mortgage rate climbed to the highest level since July 2025 at 6.75% on Tuesday, according to data from Mortgage News Daily. The rate stands at 6.67% at the time of writing.
Higher mortgage rates have led to affordability concerns, making homeownership less attractive for first-time buyers. The National Association of Realtors recently slashed its home sales growth projection to 4% for 2026 from 14% previously projected. “Lower consumer confidence and softer job growth continue to hold back buyers,” Lawrence Yun, NAR’s chief economist, said in a statement.
Auto Debt Rises Amid Soaring Gas Prices
Auto debt has risen to $1.68 trillion at the end of 2025 from $1.23 trillion in 2018, indicating that about one in four Americans had auto loan or car lease debt. The 37% rise in debt shows the tough choices consumers face between bigger monthly bills and longer loan terms.
Higher Rates Push Up Credit Card Defaults
U.S. consumers are struggling to make credit card payments, with delinquencies surging to 13.1%, levels not seen in 15 years. Reports indicate that delinquencies have surged by 5.5 percentage points since the third quarter of 2022, highlighting the growing financial strain on households as credit card payments become increasingly difficult to manage.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo courtesy: Shutterstock
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