Consumer News: Zero-calorie sweeteners may increase your appetite, study finds

Change in how roofs are insured could make the biggest difference

By Mark Huffman of ConsumerAffairs

• New federal mortgage guidelines could reduce insurance costs for many U.S. homebuyers

• Changes affect loans backed by Fannie Mae and Freddie Mac, including condos and rural properties

• Updates aim to reflect rising insurance costs while maintaining core property protections

Federal housing officials have announced changes to mortgage insurance requirements that could lower costs for many homebuyers, particularly those purchasing condos or homes in rural areas.

The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, said the updated rules are intended to address rising property insurance premiums that have made homeownership more expensive and, in some cases, harder to obtain.

The revisions focus largely on how insurance coverage is structured for properties financed through government-backed mortgages.

Key changes to insurance requirements

One of the most significant updates allows lenders to accept Actual Cash Value (ACV) coverage for roofs on both single-family homes and condominium buildings. Unlike full replacement coverage, ACV policies factor in depreciation, meaning insurers pay the current value of a roof rather than the cost to fully replace it.

However, the rest of the property must still be covered at Replacement Cost Value (RCV), ensuring that major structural damage would be fully repaired or rebuilt.

Housing officials say this hybrid approach is designed to balance affordability with adequate protection, particularly as roof replacement coverage has become more expensive and harder to obtain in some regions.

Impact on condo buyers and associations

The changes are expected to have a notable effect on condominium markets. Condo associations will now have more flexibility in how they structure insurance policies, including the ability to use ACV coverage for roofs.

In addition, a previously complex rule governing per-unit insurance deductibles has been simplified. Industry groups had argued that the earlier requirements made it difficult for some condo buildings to qualify for financing backed by Fannie Mae and Freddie Mac.

With the revisions, more condo developments may meet eligibility standards, potentially expanding options for buyers.

Removal of prior guidance

The FHFA also eliminated a 2024 policy clarification related to insurance claims. Critics of that rule had said it could complicate claims processing and contribute to higher costs, though the agency did not characterize the change in those terms.

The updates come as insurance premiums have risen sharply in many parts of the country due to increased risks from natural disasters, inflation in construction costs, and insurers pulling back from certain markets.

By adjusting insurance requirements rather than coverage for entire structures, policymakers are attempting to reduce monthly housing costs without significantly weakening overall protection for homeowners.

What it means for buyers

For prospective buyers, especially first-time purchasers, lower insurance costs could translate into reduced monthly mortgage payments and improved loan qualification prospects.

Current homeowners with mortgages backed by Fannie Mae or Freddie Mac may also see changes in how their insurance policies are structured over time, depending on lender and insurer practices.

Housing experts say the real-world impact will vary by location and insurance market conditions, but the changes could provide some relief in areas where premiums have been a major barrier to homeownership.

The delivery service warns it's running out of money

By Mark Huffman of ConsumerAffairs

• The U.S. Postal Service says it is facing a worsening financial shortfall despite recent reforms

• Rising operational costs and declining mail volume are straining the agencys budget

• Officials warn that difficult decisions including service changes may be unavoidable

The U.S. Postal Service (USPS) is sounding the alarm over a new wave of financial challenges, warning that the agencys long-term stability is increasingly at risk despite recent modernization efforts.

In a statement released this week, postal officials said the organization is grappling with a severe and persistent financial imbalance driven by a combination of rising costs and continued declines in traditional mail volume. While package delivery has grown in recent years, it has not been enough to offset losses in first-class mail historically the Postal Services most profitable segment.

"I am not sure that the American public is aware that the Postal Service is at a critical juncture, said Postmaster General David Steiner, in a statement. I know that I wasn't aware of the extent of it before I took on this role, but at our current run rate and if we continue to pay our required obligations in the same manner as we have done in recent years, then we will be out of cash in less than 12 months.

The Postal Service has implemented several reforms in recent years under its Delivering for America plan, including network consolidation, pricing adjustments, and investments in new delivery vehicles. However, officials acknowledged that these measures have yet to fully stabilize the agencys finances.

Multi-billion dollar losses

According to preliminary figures, the USPS is projecting multi-billion-dollar losses over the coming fiscal years if current trends continue. Key drivers include escalating fuel costs, maintenance expenses for an aging infrastructure, and statutory obligations that limit pricing flexibility.

Industry analysts say the Postal Service faces a difficult balancing act. The agency cant simply raise prices indefinitely without risking further volume declines as they lose business to other delivery services.

The warning has already drawn attention from lawmakers, some of whom are calling for additional oversight and potential legislative action. Others argue that deeper structural changes including revisiting the agencys universal service mandate may be necessary.

For consumers, the financial strain could translate into gradual but noticeable changes, such as slower delivery standards, higher postage rates, or reduced services in certain areas.

As the agency navigates its uncertain financial path, stakeholders across government and industry will be watching closely to see whether reform efforts can keep one of the nations oldest institutions on solid ground.

But federal data suggest more users are falling behind in their payments

By Mark Huffman of ConsumerAffairs

• Buy Now, Pay Later (BNPL) usage continues to surge, with 37% of U.S. consumers using it in the past 90 daysup five percentage points from a year ago.

• Customer satisfaction is rising sharply for traditional banks, even as FinTech providers still dominate overall usage.

• Most users rely on pay in four installment plans and link payments to debit cards, signaling BNPLs growing role in everyday spending.

Buy Now, Pay Later services are becoming an increasingly common tool for managing everyday expenses, according to the 2026 U.S. Buy Now Pay Later Satisfaction Study released by J.D. Power.

The study found that more than one-third of U.S. consumers37%used BNPL within the past three months, marking continued rapid adoption of the short-term financing option. That figure represents a notable five-point increase from the previous year, underscoring how quickly BNPL is moving from a niche payment method to a mainstream financial tool.

As usage grows, consumers are also expanding how they use BNPL. Rather than reserving it for large or occasional purchases, many are now relying on installment plans to manage routine spending.

Growing rapidly

The 2026 study shows sustained and rapid growth of BNPL, driven largely by increased use of services offered by FinTech providers, said Sean Gelles, senior director of banking and payments at J.D. Power. When it comes to overall satisfaction, however, the traditional financial institutions are delivering a much more positive user experience.

That gap in satisfaction could reshape the competitive landscape. While FinTech firms have led BNPL adoption, traditional banks appear to be gaining ground with customers. Bank-branded BNPL services posted an average satisfaction score of 704 on a 1,000-point scaleup 59 points from last year. In contrast, FinTech providers saw satisfaction fall to 603, a 17-point decline.

The findings suggest an opening for established financial institutions to capture more market share by leveraging existing customer trust. According to Gelles, consumers are increasingly interested in BNPL options offered by familiar banking brands.

How BNPL is used

The study also highlights how and when consumers choose BNPL. Among those using credit card-linked installment plans, 52% decide to split payments after completing a purchase, while 48% make that decision at checkout. That split indicates an opportunity for banks to integrate BNPL options more directly into the point-of-sale experience.

In terms of payment behavior, the pay in four model remains dominant. More than eight in 10 FinTech users and nearly three-quarters of bank users opt for four equal installments. Debit cards are the most common funding source, with 64% of FinTech customers linking payments to a debit account.

Though a convenient way to make a purchase, there is growing evidence that some consumers are making multiple BNPL purchases at the same time, putting a strain on their finances. According to Federal Reserve data, about 24% of BNPL users have made a late payment, up from 18% the year before.

Some surveys show even higher rates29% overall, and as high as 39% among Gen Z.

Among providers, Chase ranked highest in overall customer satisfaction with a score of 706. Plan It by American Express followed closely at 703, while Citi Flex Pay ranked third at 687.

The J.D. Power study, now in its fourth year, surveyed 3,909 U.S. consumers between January 2025 and January 2026, offering a detailed snapshot of how BNPL is evolvingand where it may be headed next.

Gas prices have jumped by nearly 90 cents a gallon since the start of the war

By Mark Huffman of ConsumerAffairs

• U.S. gas prices have surged to nearly $3.89 per gallon, rising more than 80 cents in just over two weeks as the Iran war disrupts global oil supplies.

• Attacks on energy infrastructure and the closure of the Strait of Hormuzresponsible for about 20% of global oil shipmentshave pushed crude prices above $100 per barrel.

• Analysts warn the conflict could drive prices even higher, adding inflation pressure and straining household budgets nationwide.

Motorists are feeling the financial impact of the escalating war involving Iran, as gasoline prices climb rapidly in response to disruptions in global oil supply.

AAA reports the national average price for regular gasoline has jumped to about $3.89 per gallon, marking one of the sharpest increases in recent years. Prices had remained below $3 for months prior to the outbreak of hostilities in late February, underscoring how quickly geopolitical tensions can translate into higher costs at the pump.

At the heart of the surge is a shock to global energy infrastructure. Iranian attacks on oil and gas facilities across the Persian Gulf, combined with the effective closure of the Strait of Hormuz, have choked off a key artery for the worlds oil supply. The narrow waterway typically handles roughly one-fifth of global petroleum shipments, making any disruption there especially consequential.

As supply fears mounted, crude oil prices spiked above $100 per barrel, a level not seen since earlier global crises. Brent crude has climbed dramatically from pre-conflict levels below $75, while U.S. benchmark crude is approaching $100.

Highest fuel prices in years

Consumers continue to feel the sting of rising oil, gasoline, and diesel costs as geopolitical tensions in the Middle East remain elevated, pushing gasoline prices to their highest levels in years while diesel could soon approach the $5-per-gallon mark nationally, Patrick De Haan, head of petroleum analysis at GasBuddy, said in the company blog.

Until we see a meaningful resumption of oil flows through the Strait of Hormuz, upward pressure on fuel prices is likely to persist. At the same time, seasonal forces are beginning to intensify as several regions complete the transition to summer gasoline, creating a double headwind that could continue driving pump prices higher in the weeks ahead.

The effects are uneven across the United States. Western states, which often face higher fuel taxes and stricter environmental regulations, are seeing the steepest prices, with some exceeding $5 per gallon. Meanwhile, even traditionally lower-cost regions have seen sharp increases, leaving no state untouched by the surge.

Government officials have taken steps to blunt the impact, including releasing oil from strategic reserves and temporarily easing shipping regulations to improve fuel distribution. However, analysts say such measures may offer only limited relief if the conflict drags on.

Economists warn that persistently high fuel costs could ripple through the broader economy. Higher gasoline and diesel prices raise transportation costs, which in turn can push up prices for goods and services. Some analysts caution that prolonged energy volatility could dampen consumer spending and complicate efforts to control inflation.

In February, the Producer Price Index rose at the fastest level in months

By Mark Huffman of ConsumerAffairs

• Wholesale inflation accelerated in February, with the Producer Price Index (PPI) rising 0.7%, the fastest monthly gain in months.

• Goods prices surged 1.1%, driven by sharp increases in food and energy, including a nearly 49% spike in vegetable prices.

• Core producer prices (excluding food, energy, and trade services) climbed 0.5% for the 10th straight month, signaling persistent underlying inflation.

Economists keep an eye on wholesale prices, because they eventually affect the prices consumers pay. The trend is not good.

Wholesale prices picked up momentum in February, reflecting broad-based increases across goods and services, according to new data from the U.S. Bureau of Labor Statistics.

The Producer Price Index (PPI) for final demand rose 0.7% for the month on a seasonally-adjusted basis, following gains of 0.5% in January and 0.4% in December. On a year-over-year basis, producer prices increased 3.4%, matching the largest annual gain recorded since February 2025.

The February increase was driven by both goods and services, though goods prices showed the strongest acceleration. Prices for final demand goods climbed 1.1% the largest jump since August 2023 while services advanced 0.5%.

The biggest drivers

Food and energy played a major role in the goods increase. Food prices surged 2.4%, accounting for roughly 40% of the overall rise in goods. Energy prices also rose sharply, up 2.3%.

A standout contributor was a dramatic 48.9% spike in prices for fresh and dry vegetables, which alone accounted for more than one-fifth of the overall increase in goods. Other notable increases included diesel fuel, gasoline, jet fuel, chicken eggs, and tobacco products. In contrast, prices for jewelry fell 4.0%, while home heating oil and soft drinks also declined.

On the services side, the 0.5% increase marked the third consecutive monthly gain. Much of the rise came from services excluding trade, transportation, and warehousing, which climbed 0.6%.

Trade services and transportation and warehousing services also posted gains of 0.4% and 0.5%, respectively.

Within services, a sharp 5.7% increase in traveler accommodation prices was a key driver, accounting for about one-fifth of the overall services advance. Prices also rose for food and alcohol wholesaling, financial services such as securities brokerage and investment advice, and inpatient care. However, some sectors saw declines, including a 4.5% drop in retail margins for apparel and accessories, as well as decreases in airline passenger services and gaming receipts.

Meanwhile, core producer prices which exclude food, energy, and trade services rose 0.5% in February. This marked the tenth consecutive monthly increase, pushing the 12-month gain to 3.5%.

The steady climb in core prices suggests that underlying inflation pressures remain persistent, even as some categories show volatility.