Where are interest rates on mortgages, CDs and credit cards heading in 2025?

Americans started to see some financial relief in 2024 as cooling inflation led the Federal Reserve to cut interest rates three times after jacking up borrowing costs to their highest level in 23 years in a bid to hose down red-hot prices.  

The Fed's policy shift raises questions about what 2025 might bring for borrowers, especially on the home-buying front, where mortgage rates have remained stubbornly high despite the rate cuts. On Jan. 2, the 30-year fixed rate mortgage inched up to 6.91%, its highest point in almost six months, Freddie Mac said on Monday.

Complicating the financial picture are President-elect Donald Trump's economic plans. Those could include sweeping new tariffs on foreign goods and more tax cuts, policies economists warn could reignite inflation. If that occurs, the Fed could be hard-pressed to continue its rate-cutting push.