Consumer News: Used car sales surged just before the tariffs

There are a lot of individual factors that determine that answer

By Mark Huffman of ConsumerAffairs

• Mortgage rates remain higher than pandemic-era lows, but theyve eased from recent peaks, creating selective refinancing opportunities.

• Homeowners with rates at least 0.75% to 1% above todays averages may benefit but closing costs can erase savings if they plan to move soon.

• Cash-out refinancing can provide liquidity, but it increases long-term interest costs and resets loan terms.

As mortgage rates settle into a new normal, many homeowners are wondering whether 2026 could finally be the right time to refinance. The answer depends less on national headlines and more on individual math.

After climbing sharply in recent years, mortgage rates have stabilized compared with their highs by one account falling below 6% though they remain well above the rock-bottom levels seen in 2020 and 2021. That means refinancing is no longer a universal money-saving move but for some borrowers, it can still make financial sense.

When refinancing may make sense

The traditional rule of thumb has been that refinancing is worth considering if you can lower your interest rate by at least 1 percentage point. In todays environment, some lenders say a reduction of 0.75 percentage points can still be worthwhile, depending on loan size and how long you plan to stay in the home.

For example, a homeowner with a $350,000 loan who reduces their rate by 1% could save hundreds per month. Over time, that adds up but only if they stay in the house long enough to recover closing costs, which typically range from 2% to 5% of the loan amount.

Borrowers who originally purchased when rates were elevated particularly in 2023 or 2024 may be best positioned to benefit if rates dip modestly.

Monthly payment vs. long-term cost

One common mistake homeowners make is focusing solely on lowering their monthly payment.

Refinancing into a new 30-year loan resets the clock. Even at a slightly lower rate, extending repayment can increase the total interest paid over the life of the loan. Homeowners who have already paid down several years of their mortgage may want to consider a 15- or 20-year refinance instead, or choose a new term that matches their remaining payoff timeline.

The key calculation is the break-even point how many months it will take for monthly savings to exceed upfront refinancing costs.

Cash-out refinancing: Proceed carefully

For homeowners who have built significant equity, a cash-out refinance can unlock funds for home improvements, debt consolidation or other expenses. But this strategy carries risk.

By increasing the loan balance, borrowers may trade lower-interest mortgage debt for higher long-term costs. And if home values soften, they could reduce their equity cushion.

Financial advisers generally caution against using home equity to fund discretionary spending. However, using it strategically such as consolidating high-interest credit card debt or financing value-adding renovations can make sense in certain circumstances.

Credit score and home equity matter

Lenders reserve the best refinance rates for borrowers with strong credit typically 700 or higher and at least 20% equity in their home. Those with lower credit scores may see smaller rate improvements or higher fees.

Homeowners should also consider whether theyll need a new appraisal and whether their homes value has changed significantly.

Experts consistently recommend gathering at least three quotes. Fees, lender credits and rate-lock policies can vary widely. Even a fraction of a percentage point difference can translate into thousands of dollars over time.

Online lenders, credit unions and traditional banks may all price loans differently, and some offer streamlined refinance programs that reduce paperwork for borrowers with government-backed loans.

Now can be a good time to refinance but only for the right borrower.

Homeowners who secured mortgages at higher recent rates, plan to remain in their homes for several years and can meaningfully reduce their rate may benefit. Those who locked in ultra-low pandemic-era loans are unlikely to find better terms in the current environment.

Alphabets autonomous vehicle unit adds four new markets as it scales robotaxi operations

By Mark Huffman of ConsumerAffairs

• Waymos self-driving ride service now operates in 10 U.S. cities after launching commercial robotaxi operations in Dallas, Houston, San Antonio, and Orlando.

• Initial rides are limited to select users via the Waymo app, with broader availability expected as each service area scales up.

• Waymo is pushing ahead of rivals like Tesla and Zoox, and has plans to grow to 20+ citiesincluding potential international markets like Londondespite regulatory hurdles in some regions.

Waymo, Alphabets autonomous vehicle unit, has significantly expanded the footprint of its self-driving ride-hailing service, now offering commercial robotaxi operations in 10 major U.S. cities after simultaneously launching in four new markets: Dallas, Houston, San Antonio, and Orlando.

The companys fully autonomous vehicles no driver behind the wheel are now roaming key downtown areas in Texas and Florida, complementing existing operations in Phoenix, San Francisco, Los Angeles, Miami, Atlanta, and Austin. Riders in the new cities can download the Waymo app and receive an invitation to schedule rides as service zones grow.

This expansion marks one of the largest single rollouts in Waymos history and underscores its strategy to scale steadily nationwide. While not every resident will immediately be able to hail a ride, the phased approach mirrors previous launches: starting with limited access and gradually widening availability as the system and local infrastructure are optimized for autonomous traffic.

Waymos lead in the autonomous transport space continues to widen. Competitors like Tesla and Amazon-backed Zoox have been slower with broader, hands-off services Tesla still hasnt achieved a true driverless deployment outside limited testing, and Zoox is offering more constrained robotaxi experiences.

Whats next?

Looking ahead, Waymo has publicly listed plans to bring its service to 20 or more cities by the end of 2026, with international targets including London and Tokyo, although timing and regulatory approval vary by market.

For consumers, that means autonomous rides could become an everyday transportation option in more cities soon potentially reshaping local transit, reducing reliance on personal cars, and accelerating the adoption of driverless technology across the U.S.

The price of Ozempic and Wegovy will fall by up to 50%

By Mark Huffman of ConsumerAffairs

• Novo Nordisk is slashing the list prices of its flagship weight-loss and diabetes drugs, including Wegovy and Ozempic, by up to 50% in the U.S. starting Jan. 1, 2027.

• The move is designed to improve affordability and access for patients, particularly those with high-deductible insurance plans or co-insurance tied to list prices.

• The announcement comes amid intense competition in the GLP-1 obesity and diabetes market, notably from Eli Lillys tirzepatide drugs, and has triggered reactions in financial markets.

In a dramatic shift for U.S. drug pricing, Danish pharmaceutical giant Novo Nordisk has announced plans to significantly reduce the list prices of its widely used weight-loss and diabetes medications, including Wegovy, Ozempic and Rybelsus, starting Jan. 1, 2027.

The move will see list prices for these GLP-1 receptor agonist therapies fall to a uniform $675 per month, with Wegovy cut by about 50% and Ozempic by roughly 35%, according to company statements and industry reports.

The price reductions are aimed at tackling long-standing affordability concerns in the United States, where these blockbuster drugs have been criticized for their high costs with list prices previously exceeding $1,300 per month for Wegovy and around $1,000 for Ozempic and Rybelsus. By lowering the official list price, Novo Nordisk hopes to ease the burden on patients, particularly those with high-deductible health plans or co-insurance structures that tie out-of-pocket costs to list prices.

Lowering the list price of Wegovy and Ozempic is the best approach to address the unprecedented opportunity to help more than 100 million people living with obesity and over 35 million people with type 2 diabetes in the United States, said James Millar, executive vice president of Novo Nordisks U.S. operations, in a company press release.

Increasing competition

Industry analysts say the price cuts also reflect intensifying competition in the rapidly expanding market for GLP-1 agonist therapies. Rivals such as Eli Lilly & Co. have seen strong growth with their tirzepatide drugs Mounjaro and Zepbound, prompting Novo to recalibrate pricing to retain market share.

Financial markets reacted to the news, with shares of both Novo Nordisk and Eli Lilly trading lower in early trading following the announcement. Investors appeared to weigh the potential impact of price reductions on revenue growth for Novo and the broader competitive landscape in the obesity-drug space.

Despite the headline price cuts, experts and patient advocates note that the changes do not affect all prices equally. For uninsured patients paying cash, the list price adjustments may not translate directly into lower transaction costs, and most patients with insurance already pay reduced amounts through negotiated plans.

Still, the official cuts could lead to broader ripple effects in insurers negotiations and coverage decisions over time.

The 30-year mortgage rate is now below 6% barely

By Mark Huffman of ConsumerAffairs

• The housing market has yet to fully emerge from its winter hibernation, but improving affordability points to a more active home shopping season this spring.

• A median-income U.S. household can now comfortably afford a $331,483 home with a 20% down payment about $30,000 more than a year ago, according to a new Zillow analysis.

• Typical mortgage payments are down 8.4% from a year ago, as incomes rise and mortgage rates fall, boosting buying power to its highest level since early 2022.

After two years of strained affordability, home shoppers are finally seeing meaningful relief. A new Zillow analysis finds that a household earning the national median income can now afford a home priced at $331,483, assuming a 20% down payment.

Thats $30,302 more in purchasing power than in January 2025, driven by modest income growth, flattening home values and a notable decline in mortgage rates. According to Mortgage News Daily, the average 30-year fgixed-rate mortgage fell to below 6% for the first time since 2022.

The typical mortgage payment excluding taxes and insurance has dropped 8.4% from a year earlier. Mortgage rates averaged 6.1% last month, down from 6.96% in January 2025. Thats a sharp improvement from October 2023, when rates peaked at 7.62%, the highest monthly average since 2000. At that point, median-income buying power had fallen to $272,224, the lowest level in recent years.

Buying power is now at its strongest level since March 2022, when mortgage rates were still below 5%.

A more than $30,000 gain in buying power is meaningful for households that have been stretched thin by high rates, said Kara Ng, senior economist at Zillow. It can mean the difference between settling and choosing. That doesn't suddenly make this market affordable for everyone, but it does crack open doors that had firmly shut when rates peaked.

Expensive markets see the biggest jumps

The decline in mortgage rates has had an outsized effect in high-cost metro areas, where even small rate changes significantly alter monthly payments.

San Jose posted the largest annual gain in buying power among major markets, with a nearly $74,000 increase. A median-income household there can now afford a $741,686 home, up from $667,829 a year ago. San Francisco buyers gained $56,115 in purchasing power, while Washington, D.C. saw a $48,881 increase. San Diego and Boston followed closely, each posting gains of roughly $46,000.

In Los Angeles, the affordable home price for a median-income household rose to $421,030, up from $379,754 a year earlier. In New York City, buying power climbed to $381,237, compared with $346,450 last year.

More homes within reach

Improved buying power is translating into more options inthe housing market.

Nationally, a median-income household can now afford about 446,982 homes for sale roughly 82,300 more listings than a year ago. Those affordable homes represent 40.3% of all listings, up from 34.8% in January 2025. Total inventory has also improved, with 6% more homes on the market than a year earlier.

Some of the largest increases in affordable inventory are in markets where home values have declined year over year.

Houston leads the nation, with nearly 4,000 additional listings now within reach of a median-income buyer compared to last year. Phoenix added 3,434 affordable homes, Dallas gained 3,267, Miami added 2,981 and Atlanta saw an increase of 2,279. Home prices have softened in each of those markets, further stretching buyers dollars when combined with lower mortgage rates.

In Houston, the affordable home price rose to $298,282 from $274,173 a year ago, while the number of affordable listings jumped to 12,176 from 8,180. Phoenix saw affordable inventory climb to 7,951 homes from 4,517 last year. Dallas now has 10,979 affordable listings, up from 7,712.

Cautious optimism for spring

While affordability remains challenging compared with pre-pandemic norms, the steady decline in rates is providing momentum heading into the traditionally busy spring home shopping season. Zillow said it expects mortgage rates to continue easing through 2026, which could unlock additional buying power if home price growth remains subdued.

For buyers who have been sidelined by elevated borrowing costs, the recent shift may signal an opportunity to reenter the market particularly in metros where inventory is improving and prices have cooled.

For now, the market may still be shaking off its winter slowdown, but the early signs point to a spring with more choice and slightly more breathing room for buyers.

How to shop strategically during tariff chaos

• Price pressure may ease eventually. Lower tariffs reduce importer costs, but retailers may be slow to cut prices.

• Savings wont happen overnight. Some tariffs remain, and new ones could emerge, keeping prices volatile.

• Watch big-ticket sales. Appliances, electronics, and furniture may see stronger discounts as retailers clear excess inventory.

Last Friday, the Supreme Court dropped a decision that could reshape what you pay for everything from a refrigerator to a cordless drill.

In a 63 ruling, the court said the International Emergency Economic Powers Act (IEEPA) does not give President Trump the authority to impose broad, country-specific tariffs. That wipes out a major chunk of the so-called Liberation Day tariffs, including the 10% across-the-board import tax that had been in place.

Translation: A big batch of import taxes just got tossed.

But before you get too excited about instant price drops the next time you shop, lets slow this train down. Unfortunately, this is going to be noisy and possibly a bit messy.

First, a quick reminder: Tariffs are taxes

Tariffs arent paid by foreign governments. Theyre paid by U.S. importers when goods hit our ports. And in many cases, companies then pass those costs along to you.

Thats why this ruling matters.

According to the Yale Budget Lab, if the court had upheld the tariffs, the effective U.S. tariff rate would have remained around 16.9%. With the ruling, that rate drops to about 9.1%.

Thats a pretty big percentage swing.

And it directly affects shopping categories like:

• Electronics
• Furniture
• Household appliances
• Sporting goods
• Beauty products
• Home improvement items

These are always the products that see price spikes first when trade policy shifts.

Heres what this news means for shoppers:

It should ease price pressure

In theory, removing tariffs lowers costs for importers. Lower costs can then lead to you starting to see lower prices at the store.

The Yale Budget Lab estimates the average household would have lost about $800 over time due to tariff-related price increases. That projected hit just got cut roughly in half.

Thats meaningful, but the reality is that prices dont drop as quickly as they rise.

If retailers already raised prices to cover tariff costs, they may not be in a rush to reverse those increases. Especially with inflation still running at 3.0% annually.

The bottom-line is that retailers hate uncertainty. And right now, uncertainty is being felt everywhere.

Dont expect instant rollbacks at checkout

Even though the court struck down most of the tariffs under IEEPA, not all tariffs are gone.

For example, steel and aluminum tariffs (50%) remain in place and other sector-specific tariffs also remain.

And the administration has already signaled it will pursue new tariffs under different legal authorities, including the Trade Act of 1974.

In fact, the president has already floated a new 10% global tariff using alternative authority.

So, if youre waiting for that appliance or patio set to suddenly drop 15% overnight, dont hold your breath.

This could turn into a legal ping-pong match that drags on for months.

Big-ticket products may catch a break

Heres where you can be strategic shopper. If some retailers overbought at tariff-inflated prices, theres a good chance they have inventory that they need to clear out to make room for next season.

So, if youre planning on buying any of these, you can potentially score a deal in the next few months:

• Major appliances
• Electronics
• Imported furniture
• Certain home improvement products

Retailers hate sitting on extra inventory, no matter what they paid for it.

Id specifically be watching these:

• Winter clearancesales
• Spring home improvement promotions
• Memorial Day sales
• Back-to-school electronics promos
• Fall appliance promotions

Pro tip: Start tracking prices now on the exact model you want (screenshots help). Then watch for stacking opportunities like a store-wide sale in conjunction with a clearance price drop.

And dont forget to ask about floor models or open box products at the end of a sales event. Managers desperately want to get rid of that stuff, and are often willing to cut you a great deal. Start by asking for an additional 25% off and be willing to settle for 15%.

What this means for businesses:

1. Tariff refunds could be massive and really complicated

An estimated 300,000 U.S. importers may be entitled to refunds for tariffs collected under IEEPA.

Importers have paid roughly $175 billion under that authority, according to analysis from the Cato Institute.

But heres the wrinkle: Refunds wont automatically show up in importers bank accounts.

The administration has indicated it does not plan to voluntarily issue these payouts. That means litigation, and of course, endless paperwork, claims, and inevitable delays.

Some businesses have already passed those costs along to the consumers who buy their products. So even if they get refunds, that doesnt guarantee we will see price cuts any time soon.

2. Import-heavy companies can breathe easier

Companies that rely heavily on imported components (tech, appliances, and retail) just got some much needed cost relief.

The Consumer Technology Association praised the ruling, stressing that American businesses need predictability to continue to innovate and this ruling gives them that.

Its an excellent point. When tariff policy is constantly shifting, companies are inclined to freeze hiring, delay investment, and pad their prices for protection.

My bottom line for consumers

Heres how Id play it right now:

1. Dont panic-buy. This is not a prices will skyrocket tomorrow moment.
2. Watch for inventory clearance. Retailers caught mid-policy shift may discount aggressively, especially as spring inventory starts to show up.
3. Be patient on big purchases. Volatility often creates some chances to save money that might not otherwise exist, wait until you find the best deal.
4. Assume more legal drama is coming. Unfortunately, all of this trade policy news is far from settled.

For now, this tariff news leans positive for consumers, especially in import-heavy categories. But only time will tell how this all shakes out.