Consumer News: States are probing OpenAI’s impact on children and vulnerable users

But it all depends on where you live

By Mark Huffman of ConsumerAffairs

• Zillow finds the typical U.S. homebuyer now breaks even on a home purchase after about six years, down from a peak of 8.4 years in 2023.

• In some Midwest and Southern metros, buyers can come out ahead of renters in as little as four years, while in several expensive coastal markets renting remains cheaper even after 30 years.

• Researchers say the rent-versus-buy decision increasingly depends on location, expected length of stay and lifestyle preferences.

A home purchase is once again becoming a better financial bet for many Americans, though where you live remains the biggest factor in determining whether buying beats renting.

A new Zillow analysis found the typical U.S. homebuyer reaches the financial break-even point after about six years, meaning the costs of buying and owning a home are eventually offset by the benefits of homeownership compared with renting. That timeline has improved significantly from a peak of 8.4 years in October 2023.

The study found large differences among metropolitan areas. Buyers in Columbus, Ohio, Memphis, Tenn., and Buffalo, N.Y., can break even in about four years, while buyers in Indianapolis also face a relatively short payback period.

At the other end of the spectrum, Zillow found that buying never becomes financially advantageous over renting during a 30-year mortgage term in San Francisco, San Jose and New Orleans because of the combination of high home prices and local rent levels.

"For generations, Americans have been told that buying a home is the smartest financial move they'll ever make," Zillow senior economist Orphe Divounguy said in announcing the findings.

He said the research shows that both renting and buying can be smart financial choices depending on the market.

What changed?

According to Zillow, conditions for buyers have improved in recent years, shortening the time required for ownership to outperform renting. The analysis examined the financial outcomes of buying versus renting over the life of a 30-year fixed-rate mortgage in each of the nation's 50 largest metropolitan areas.

The model included mortgage payments, property taxes, insurance, maintenance expenses and closing costs. It also accounted for the opportunity cost of tying up money in a down payment rather than investing it elsewhere.

One finding challenges conventional wisdom about down payments. Zillow said buyers who make smaller down payments may sometimes reach the break-even point sooner because they can keep more money invested. In Cincinnati, for example, a buyer putting 5% down breaks even about six months earlier than a buyer putting 20% down.

More than a financial decision

While the study focuses on economics, Zillow researchers stressed that housing decisions also involve lifestyle considerations.

Buying offers benefits such as building equity, payment stability and the ability to customize a home. Renting, meanwhile, provides flexibility, fewer maintenance responsibilities and greater access to cash for other investments.

The report suggests that Americans planning to stay in one place for more than six years may find buying increasingly attractive, especially in lower-cost markets. Those expecting to move sooner or living in some of the nation's most expensive housing markets may still come out ahead by renting.

Reducing debt and paying bills on time helps a lot

By Mark Huffman of ConsumerAffairs

• Paying down credit card balances is often the fastest way to improve a credit score.

• Making every payment on time remains the single most important factor in most credit-scoring models.

• Consumers should regularly review their credit reports for errors that could be dragging down their scores.

Credit scores are extremely important in everyday life. As interest rates remain elevated and lenders continue to scrutinize borrowers, maintaining a strong credit score has become more important than ever. A higher credit score can help consumers qualify for lower mortgage rates, better credit card offers, and more favorable loan terms.

While improving a credit score takes time, personal financial experts say there are several steps consumers can take to see meaningful progress.

Lower credit card utilization

One of the quickest ways to boost a credit score is to reduce credit card balances. Credit utilizationthe percentage of available credit a consumer is usingaccounts for a significant portion of many credit-scoring models.

Experts generally recommend keeping utilization below 30% of available credit, though staying under 10% can produce even better results.

For example, a consumer with a $10,000 credit limit should ideally keep balances below $3,000 and preferably under $1,000.

Pay every bill on time

Payment history is the largest factor affecting credit scores. A single late payment can remain on a credit report for up to seven years and may significantly lower a score.

Consumers who struggle to remember due dates may benefit from setting up automatic payments or calendar reminders. Even making the minimum payment can help avoid costly late fees that drag down your score.

Mistakes on credit reports are more common than many consumers realize. Incorrect account balances, payments mistakenly reported as late, or accounts that do not belong to the consumer can all hurt a credit score.

Consumers are entitled to free copies of their credit reports from the three major credit bureausEquifax, Experian, and TransUnion. Reviewing those reports regularly can help identify problems before they become costly.

Any inaccuracies should be disputed promptly with the credit bureau and the creditor reporting the information.

Avoid closing old accounts

Many consumers assume closing unused credit cards will improve their credit profile. In reality, closing long-standing accounts can sometimes lower a credit score.

Older accounts help establish a longer credit history, and closing a card can also increase credit utilization by reducing total available credit.

Unless an account carries high fees or presents another problem, keeping it open may be beneficial.

Limit applications for new credit

Each time a consumer applies for a new loan or credit card, the lender may perform a hard inquiry on the credit report. Multiple inquiries within a short period can temporarily lower a score.

While consumers should not avoid applying for credit when necessary, experts recommend spacing out applications whenever possible.

Some consumers, particularly young adults or those rebuilding credit, may benefit from being added as an authorized user on a family member's credit card account.

If the primary cardholder has a strong payment history and low balances, that positive history may help improve the authorized user's credit profile.

However, the strategy can backfire if the primary account holder misses payments or carries excessive debt.

Be patient

Improving a credit score rarely happens overnight. While some actions, such as paying down balances, may produce results within a month or two, rebuilding credit after missed payments or financial setbacks can take much longer.

Financial counselors say the most effective approach is maintaining consistent habits: paying bills on time, keeping debt levels manageable, and monitoring credit reports regularly.

For consumers looking to improve their financial health, those habits can lead not only to higher credit scores but also to lower borrowing costs and greater financial flexibility over time.

Financial markets react immediately as oil prices drop

By Mark Huffman of ConsumerAffairs

• Lower gas prices could be the fastest consumer benefit if the deal keeps the Strait of Hormuz open and restores more oil to global markets.

• Inflation pressures could ease as energy costs fall, potentially reducing transportation and manufacturing expenses across the economy.

• Markets have reacted positively so far, but the agreement remains provisional and still faces significant political and diplomatic hurdles.

President Trump has announced that the United States and Iran have reached a framework agreement aimed at ending months of conflict and reopening the Strait of Hormuz, one of the world's most important oil-shipping routes. The agreement reportedly includes a ceasefire, the lifting of the U.S. naval blockade of Iran, and a 60-day period of negotiations over Iran's nuclear program and potential sanctions relief.

While many details remain unresolved and the deal has not yet been formally signed, financial markets immediately responded with optimism. Oil prices fell sharply and stock futures rose on expectations that disruptions to global energy supplies may be ending.

Why consumers should care

For most Americans, the most immediate impact could show up at the gas pump.

The Strait of Hormuz handles roughly one-fifth of the world's oil shipments. During the conflict, disruptions in the region helped push energy prices higher and contributed to rising inflation.

Reopening the waterway could increase oil supplies and reduce fears of shortages, putting downward pressure on crude oil prices.

Lower oil prices generally translate into:

• Lower gasoline prices

• Reduced airline fuel costs

• Lower shipping and trucking expenses

• Reduced costs for many manufactured goods

MarketWatch reported that oil prices fell more than 5% after Trump's announcement, while gasoline prices had already begun easing.

Potential impact on inflation

Energy prices affect nearly every part of the economy.

Higher fuel costs increase the expense of transporting food, consumer goods, and raw materials. If oil prices continue to decline, inflation could moderate in coming months, providing relief for consumers who have been coping with higher prices.

The conflict with Iran had been cited as a major factor behind recent inflation pressures. Trump recently argued that inflation should decline once the war ends and energy markets stabilize.

A sustained drop in inflation could also influence Federal Reserve policy, potentially making it easier for the central bank to consider future interest-rate reductions.

What investors are seeing

Wall Street's initial reaction suggests investors believe the deal could remove a major source of geopolitical uncertainty.

Following the announcement:

• Dow futures rose more than 450 points.

• Nasdaq futures climbed nearly 2%.

• Oil prices dropped significantly.

• Global stock markets moved higher.

Reasons for caution

Despite the positive market reaction, the agreement is still a framework rather than a final settlement.

Several major issues remain unresolved, including:

• Iran's nuclear activities

• Iran's missile program

• Regional security concerns involving Hezbollah and other groups

• The scope and timing of sanctions relief

Some reports also note that previous announcements of imminent agreements were followed by delays and disputes, underscoring the uncertainty surrounding the negotiations.

New research suggests updated feeding guidance is making a difference

• Researchers found egg allergy rates among Australian infants declined after feeding guidelines changed to recommend earlier egg introduction.

• The study compared more than 7,200 one-year-old children from two large population-based cohorts.

• The largest decline was seen among babies with early eczema, a known risk factor for food allergies.

Egg allergy is one of the most common food allergies in young children, and for years, parents were often advised to delay introducing potentially allergenic foods.

But that guidance changed in Australia in 2016, when health experts began recommending that foods such as eggs be introduced during a childs first year of life.

Now, new research published in JAMA Pediatrics suggests that the change may be having a measurable effect. Researchers from the University of Queensland and the Murdoch Childrens Research Institute found that rates of egg allergy among Australian infants declined after the updated recommendations were introduced.

The findings provide what researchers describe as population-level evidence that earlier egg introduction may help reduce the likelihood of egg allergy developing in childhood.

Australia has one of the highest rates of food allergy in the world with one in 10 infants allergic to one or more foods, researcher Dr. Jennifer Koplin said in a news release.

To our knowledge, this is the first study to show a reduction in egg allergy after the introduction of new infant feeding guidelines at a population level. Most parents followed the guidelines, and these results provide reassurance that this advice will help reduce the chance of their child developing an egg allergy.

How the researchers studied the trend

To examine whether egg allergy rates changed after the guideline update, researchers analyzed data from two large Australian population-based studies involving a total of 7,209 one-year-old infants.

One group included 5,276 children assessed between 2007 and 2011, before the guideline change. The second included 1,933 children assessed between 2018 and 2019, after the new recommendations had been implemented.

The researchers compared allergy rates between the two groups and accounted for known factors that can influence allergy risk. They also examined when infants were first introduced to eggs. The median age of introduction decreased from 8 months in the earlier group to 6 months in the later group, reflecting the shift in feeding practices following the guideline update.

In addition, the team conducted subgroup analyses, including a closer look at infants with early eczema, which is associated with a higher risk of food allergies.

What the study found

After adjusting for known allergy risk factors, researchers found that egg allergy prevalence fell from 9.2% in the earlier cohort to 7.6% in the later cohort. That represents a relative decline of about 17%.

The reduction was even more pronounced among infants with early eczema. In that group, egg allergy rates dropped from 34.6% to 21.9%.

While egg allergy remains relatively common and some children still develop allergies despite following current recommendations, researchers said the findings offer reassurance that the updated feeding guidelines are associated with a meaningful reduction in egg allergy rates at the population level.

Some babies can still develop food allergy despite following the guidelines, and further research is underway and needed, to find other prevention strategies, Dr. Koplin said. But we hope these findings provide reassurance to parents to continue following the current recommendations.