Mid-Year Market Changes

Matters of Personal Finance — July 7, 2025

David A Norman SR MBA, AFC®

How Mid-Year Market Changes Could Impact Your Personal Finance Plan

As we cross into the second half of 2025, the financial landscape is already shifting in noticeable ways. Inflation is cooling, interest rate cuts are on the horizon, and legislative momentum is building around student loan reform. For individuals and families focused on long-term financial health, now is the time to take stock of where you stand—and where you’re headed.

Inflation: Cooling but Still a Factor

June’s consumer price index showed the lowest year-over-year increase in over four years. While this signals positive momentum, the cost of living remains elevated in certain areas, like housing and insurance. It's a reminder that financial planning requires ongoing adjustments, not one-time fixes.

Action Tip: Revisit your monthly budget. Are your expenses still aligned with your income and goals? Consider reallocating any surplus to emergency savings or debt repayment.

Interest Rates: Prepare for Movement

With inflation easing, the Federal Reserve has hinted at the potential for rate cuts starting this fall. That could impact on everything from mortgage rates to credit card APRs and savings account yields.

Action Tip: Lock in current high-yield savings rates if possible. For those considering major loans or refinancing, monitor rate updates closely in Q3 and Q4.

Student Loan Reform: Legislative Moves

Congress is once again proposing student loan relief bills that could alter how repayment works. One bill proposes capping payments at 5% of income, while another includes forgiveness incentives for long-term borrowers.

Action Tip: If you carry student debt, stay tuned. A shift in repayment structures could offer new opportunities to reduce your monthly burden or accelerate payoff.

Why It All Matters

Mid-year is a powerful time to reassess your financial health. Whether you’re saving for retirement, managing debt, or building generational wealth, the decisions you make today ripple into your future. External changes—like inflation or interest rates—are only part of the story. Your response to them is what shapes your outcome.

At David Lee Financial Services, we work with clients to translate market signals into practical strategies. Ready for your mid-year checkup?