Auto Insurance Rates to Slow, Mortgage Rates Rise

Auto insurance rate hikes are slowing down, with an average increase of 7.5% expected in 2025, a significant decrease from the previous year's 16% rise. However, the rate changes vary by state, with New Jersey, Washington, and California experiencing increases over 15%, while North Carolina, Texas, and Iowa see the smallest increases under 3%. Meanwhile, USAA, Progressive, and Geico are projected to have the smallest rate hikes among insurers. On the credit front, the Dealertrack Credit Availability Index reported improved auto credit availability, with increased approval rates and narrower yield spreads making loans more favorable for consumers. In contrast, mortgage rates are rising, with the 30-year fixed mortgage rate reaching 6.78%, potentially driven by tariff policies and inflation concerns. These developments suggest a mixed outlook for consumers, with relief in auto insurance and credit access but challenges in the housing market due to high mortgage rates.