The Latest Personal Finance News for February 2026

Further Interest Rate Relief Not Expected Soon

The Federal Reserve appears poised to keep its benchmark interest rate steady for a while. The central bank left rates unchanged at its January 28 meeting, noting its commitment to reaching maximum employment while seeking a return to a 2% inflation rate over the long term.

Market analysts don't expect the next rate cut until June at the earliest, with most forecasting only one or two total reductions throughout 2026. The cautious approach reflects persistent inflation concerns and general economic uncertainty.

Why It Matters

The Federal Reserve's benchmark rate directly influences the prime rate, which serves as the foundation for pricing credit cards, auto loans, personal loans and home equity lines of credit. When the Fed holds rates steady, banks typically maintain their rates on these variable-rate products as well.

For consumers carrying credit card balances or planning to finance major purchases, this means interest rates on short-term debt will likely remain elevated for several more months, making it more expensive to carry balances or take on new financing.

What You Can Do

• Learn about the federal funds rate.
• Understand how the Fed rate cuts impact your finances.
• Find out how Fed rate cuts affect credit cards.
• Look for ways to reduce your risks when borrowing money.

Mortgage Rates Just Above a 3-Year Low

The average interest rate on a 30-year fixed-rate mortgage currently sits at 6.09%, hovering near the lowest level in more than three years, according to Freddie Mac. Rates briefly dipped to 6.06% in mid-January—the lowest point since September 2022—and have remained relatively stable since.

This represents a meaningful decline from a year ago when borrowers faced rates above 7%. The recent drop has spurred increased homebuying activity, with purchase applications on the rise and more homeowners refinancing their existing loans.

Why It Matters

Lower mortgage rates translate directly to more affordable monthly payments, making homeownership more accessible for buyers who have been priced out over the past few years. The decline also creates opportunities for current homeowners to refinance and reduce their monthly obligations.

However, affordability remains a significant challenge. Home prices have climbed 54% over the past five years while wages have risen just 29%, according to property data provider Attom, which found that median-priced homes are less affordable than usual in 99% of counties it analyzed. While the rate drop provides relief, buyers still face hurdles from elevated home prices and limited housing inventory.

What You Can Do

• Stay on top of the current mortgage rates.
• Read up on mortgage rate forecasts for 2026.
• Learn about how mortgage interest works.
• Consider whether now is the right time to buy a house.

Education Department Delays Wage Garnishment

The U.S. Department of Education has announced it's delaying involuntary collections on federal student loans, including wage garnishment and tax refund offsets. These collection methods have been paused since the early days of the pandemic. The department says the continued delay will give borrowers additional time to prepare for upcoming repayment reforms under the Working Families Tax Cuts Act, which take effect in July 2026.

However, the federal agency didn't specify when garnishments and tax refund offsets would resume.

Why It Matters

About 8.8 million Americans are currently in default on their federal student loans, meaning they haven't made payments in at least 270 days, according to advocacy group Protect Borrowers. That represents roughly 21% of all federal student loan borrowers.

The delay provides breathing room for these borrowers, who face serious financial consequences when their loans enter default. The Working Families Tax Cuts Act also gives borrowers a second chance to rehabilitate defaulted loans, expanding on the previous one-time opportunity.

What You Can Do

• Contact your student loan servicer to confirm your loan status.
• Learn more about the federal collections process.
• Research options for when you can't pay your student loans.
• Review your options for getting out of student loan default.

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining a good credit score can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO^® Score^Θ and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.