Credit Sesame’s personal finance news roundup, March 29, 2025. Stories, news, politics, and events impacting personal finance during the past week.
Bank of America shutters branches in latest digital shift
Bank of America confirmed the closure of five branches across four states in early March 2025. As one of the nation’s largest banks, the closures impact California, Florida, Oregon, and Tennessee. This decision aligns with the bank’s broader strategy of cutting costs by shifting more customers to digital banking platforms. Bank of America’s branch closures are an example of a wider banking industry trend. According to one report, over 1,650 bank branches have been closed since 2018. Read article at MSN.com.
Mortgage delinquencies surge despite overall credit improvement
The rate of mortgages overdue by 30 days or more climbed from 2.6% to 2.9% in February 2025, marking a significant 12.1% increase within just one month. This rise is particularly concerning, as consumers typically prioritize mortgage payments to safeguard their homes. However, other credit sectors showed improvement, with declining delinquency rates for auto loans, credit cards, and personal loans, although auto loan delinquencies remain elevated compared to last year. See credit performance details at TransUnion.com.
Student loan borrowers face potential credit score reversal
New findings from Federal Reserve Bank of New York researchers highlight how pandemic-era forbearance significantly boosted credit scores for student loan borrowers. However, these improvements may soon evaporate now that the programs have ended. Throughout the pandemic, borrowers received relief from payments, with delinquent and defaulted accounts marked as current. Between 2019 and 2024, borrowers previously delinquent on student loan payments saw their credit scores rise by a median amount of 103 basis points. Those who had previously been in default on student loan payments saw their scores rise by a median amount of 72 basis points. Since those forbearance programs expired last fall, many accounts that are still delinquent or in default will start appearing on credit reports in the first quarter of this year. That could cause a sudden drop in the scores of some borrowers who previously benefited from the forbearance programs. See analysis at NewYorkFed.org.
White House sets deadline to eliminate paper checks
President Trump signed an executive order mandating the elimination of paper checks in federal transactions, effective September 30, 2025. All government-related payments and disbursements—including taxes, loan repayments, fees, fines, refunds, benefits, and vendor payments—must transition to electronic funds transfers. See press release from WhiteHouse.gov.
2024 fourth quarter GDP revised upward in final estimate
The Bureau of Economic Analysis reported its third and final estimate for economic growth in the last quarter of 2024, revising GDP growth slightly upward to a 2.4% annual rate after inflation adjustments. This revision marks a modest improvement from the previously estimated 2.3% but still indicates a slowdown from the 3.1% growth rate recorded in the third quarter. For calendar year 2024, GDP grew at 2.8% after adjustment for inflation, similar to 2023’s 2.9% real growth. Last year’s growth was attributed to increases in consumer spending, investment, government spending, and exports. See GDP report at BEA.gov.
Mortgage rates move in opposite directions
Mortgage rates experienced mixed movements last week, with 30-year rates slightly declining and 15-year rates rising again. The average 30-year mortgage rate decreased by two basis points to 6.65%, remaining within a narrow range of 6.63% to 6.67% over the past four weeks. Conversely, the 15-year mortgage rate rose for the third consecutive week, increasing by six basis points to 5.89%. 30-year rates are now 57 basis points above the low point reached at the end of last September. 15-year rates have risen by 73 basis points since then. See rate details at FreddieMac.com.
Inflation continues to exceed Fed’s target
The Personal Consumption Expenditures (PCE) price index, closely watched by the Federal Reserve, climbed another 0.3% in February, marking its third consecutive monthly increase at that pace. Sustaining this inflation rate would result in an annual figure approaching 3.7%, significantly higher than the Fed’s target of 2.0% and the 2.8% inflation rate forecasted by the Fed for 2025. The core inflation rate, which excludes food and energy price fluctuations, was even higher in March, at 0.4%. See PCE price index details at BEA.gov.
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