Morning Business Report: Mortgage rates fall as new year brings economic shifts and consumer changes

Homebuyers are getting a bit of relief to start 2026, as mortgage rates dropped to their lowest level of the year.

(LILAMAX)- Homebuyers are getting a bit of relief to start 2026, as mortgage rates dropped to their lowest level of the year. According to Freddie Mac, the average rate on a 30-year fixed mortgage fell to 6.15 percent, down from 6.18 percent the previous week. Rates began 2025 at around 7 percent, offering some encouragement for buyers after a challenging year in the housing market.

Meanwhile, President Trump has delayed planned tariff increases on several household goods, including upholstered furniture, kitchen cabinets, and vanities. The tariffs — originally set at 25 percent and scheduled to rise to as high as 50 percent — will now take effect on January 1, 2027. The move comes as consumer frustration over high prices continues to grow.

Financial markets also closed out a volatile year. The S&P 500 finished 2025 up 16 percent, rebounding from near bear-market territory earlier in the year after tariff announcements rattled investors. Much of the year’s growth was driven by strong gains in artificial intelligence stocks.

The U.S. Postal Service is also making changes in the new year that could affect customers. Reduced local pickups and longer mail routes to regional processing centers may delay postmarks — a potential issue for time-sensitive mail such as tax filings. USPS advises customers to visit a post office counter and request a manual postmark to ensure deadlines are met.

Meanwhile, Sprinkles Cupcakes announced it is permanently closing all of its locations after 20 years in business. The brand, known for its cupcake vending machines, was owned by a private equity firm. The closure has sparked backlash from employees, many of whom shared frustrations on the company’s social media pages.