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After enjoying a three-day retreat of more than 20 basis points to start the week, 30-year refinance rates ticked back up a bit Thursday. Rising 5 basis points, the flagship refi average is up to 7.14%. A surge last week, however, pushed Friday’s average to 7.31%, the most expensive reading for 30-year refi rates since July 2024.

With the 30-year refi average falling as low as 6.71% in early March, today’s rates are nearly 45 points pricier. The 30-year refi average is also almost 1.15 percentage points above last September’s two-year low of 6.01%.

Several other refi loan types climbed as well on Thursday. Both the 15-year and 20-year refi averages edged 3 basis points higher. However, jumbo 30-year refi rates slipped 5 points on average.

The states with the cheapest 30-year new purchase mortgage rates Thursday were New York, California, Florida, New Jersey, Texas, Washington, Colorado, Georgia, Massachusetts, and North Carolina. The ten states registered averages between 6.80% and 6.93%.

Meanwhile, the states with the highest Thursday rates were West Virginia, Washington, D.C., Alaska, Maryland, Mississippi, North Dakota, South Carolina, and Wyoming. The range of averages for these states was 7.01% to 7.05%.

Mortgage rates vary by the state where they originate. Different lenders operate in different regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

Since rates vary widely across lenders, it’s always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you seek.

National Mortgage Rate Averages

Rates on 30-year new purchase mortgages dipped 20 basis points over the first three days this week, then held essentially flat Thursday at a 6.95% average. That follows a surge of 44 points last week that shot the average up to 7.14%—its most expensive level since May 2024.

Last month, in contrast, 30-year rates sank to 6.50%, their cheapest average of 2025. And back in September, 30-year rates plunged to a two-year low of 5.89%.

The states with the cheapest 30-year mortgage refinance rates Thursday were California, New York, Tennessee, Florida, Texas, North Carolina, Georgia, and New Jersey. The eight states registered averages between 6.98% and 7.10%.

Meanwhile, the states with the highest Thursday refinance rates were Alaska, Montana, South Dakota, West Virginia, Wyoming, Rhode Island, Washington, D.C., Hawaii, and North Dakota. The range of 30-year refi averages for these states was 7.20% to 7.22%.

Mortgage refinance rates vary by the state where they originate. Different lenders operate in different regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

Since rates vary widely across lenders, it’s always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you seek.

National Mortgage Refinance Rate Averages

Rates for 30-year refinance mortgages dropped 22 basis points over the first three days of this week, but then ticked up 5 basis points for a 7.14% Thursday average. Last week, the flagship refi average surged 40 basis points, with Friday’s 7.31% reading being the highest level for 30-year refi rates since July 2024.

Last month, in contrast, the 30-year refinance average sank to 6.71%, its cheapest level of 2025. And back in September, rates plunged to a two-year low of 6.01%.

D.R. Horton (DHI) on Thursday became the latest homebuilder to raise concerns about the housing market as it fell short of estimates.

The company cut its full-year forecasts for both revenue and homes closed as its first-quarter results missed expectations, saying that the spring selling season has “started slower than expected” amid concerns over affordability and worsening consumer confidence. (The shares rose yesterday, likely aided by an expanded buyback plan and encouraging margins.)

That could increase the focus on the next round of results due from the industry. PulteGroup (PHM), Taylor Morrison Home (TMHC), Meritage Homes (MTH), Tri Pointe Homes (TPH), Century Communities (CCS), and M/I Homes (MHO) each report next week, with NVR (NVR), LGI Homes (LGIH), and Green Brick Partners (GRBK) are due the week after.

D.R. Horton’s report echoed others that have already arrived. KB Home (KBH), Lennar (LEN) and Toll Brothers (TOL) have all said they have seen a slow housing market in the first quarter. D.R. Horton COO Michael Murray said in Thursday’s earnings call that affordability remains a “pressure point” for homebuyers, per an AlphaSense transcript.

Trump administration tariffs could hurt demand for homes and make them more expensive, analysts have said.

“I think we’re all going to have to come to the table and adjust to deliver a house that the market finds compelling and can afford,” D.R. Horton CEO Paul Romanowski said this week, adding that “we’re just going to have to see how this plays out and work with our supply partners and vendors to figure it out together.”

Exports to China support thousands of U.S. jobs, and economists say those positions could be at risk if trade tensions between the two countries continue.

In an escalating trade war with China, the U.S. has a tariff of 145% on Chinese goods, and China has placed a tariff of 125% on U.S. goods. Economists say these trade tensions will likely make it more expensive for American businesses to import and export Chinese goods and could threaten the labor market.

According to a report by the U.S.-China Business Council, in 2022, an estimated 931,231 American jobs were supported by exports to China. However, hiring and jobs in sectors most exposed to Chinese trade could be in danger if the two countries cannot reach a long-term trade deal and elevated tariffs persist.

How’s the American consumer doing? Recent comments from companies and their executives offers clues, with some citing healthy spending behavior and others seeing people looking to get ahead of tariffs on imported goods.

A leading homebuilder has said consumer confidence contributed to a slow start to the spring selling season. A German maker of educational toys said its category is one that can prove resilient in recessionary times. And a big grocer said it’s seeing plenty of value-seeking in its aisles.

Here’s a roundup of some observations about the state of the American spender so far this year.

Some Shoppers Seek to ‘Tighten Their Pocketbooks’

Grocer Albertsons (ACI) on Tuesday said it hasn’t seen consumer behavior change much, though it did say “consumer sentiment is low.” Consumers are “saying that they will do what they’ve been doing, which is seek value and find ways to tighten their pocketbooks,” CFO Sharon McCollam said on a conference call, according to a transcript provided by AlphaSense. 

That, executives said, means things like leaning on promotions and buying more products from proprietary brands.

Grocery stores, clothing and shoe stores, specialty food stores, and liquor stores all saw upticks in visitors last week, according to foot-traffic data from retail insights company pass_by .

“This isn’t just about inflation anymore—consumers are clearly reacting to tariff headlines by buying what they fear will soon become more expensive or harder to find,” said Vice President of Marketing James Ewen. “It’s rare to see such coordinated spikes across essentials, apparel, and specialty food in one week.”

At streaming giant Netflix (NFLX), which reported results late Thursday, members don’t seem to be cancelling or shifting to cheaper plans at unexpected rates, executives said.

“Based on what we are seeing by actually operating the business right now, there’s nothing really significant to note,” CEO Greg Peters said. “So what are we looking at, primary metrics and indicators would be our retention, that’s stable and strong.”

Entertainment spending, Peters said, “has been pretty resilient in tougher economic times. Netflix, specifically, also has been generally quite resilient, and we haven’t seen any major impacts during those tougher times, albeit, of course, over a much shorter history.”

Slower Home Buying; Wealthy Travelers Keep Spending

There are signs that Americans are putting off big purchases, though some may also be pulling car purchases forward to get ahead of expected tariff-driven price increases.

Paul Romanowski, CEO of homebuilder D. R. Horton (DHI) said in its earnings call Thursday that the “spring selling season started slower than expected as potential homebuyers have been more cautious due to continued affordability constraints and declining consumer confidence.”

Airlines have been under pressure so far this year, but high-end travelers may be resilient so far.

“The high-end consumer, the more wealthy consumer, the one that takes the global vacations, the one that wants to sit in a premium seat seems to be less impacted so far,” United Airlines (UAL) Chief Commercial Officer Andrew Nocella said during Wednesday’s earnings call, 

American Express (AXP) execs said demand is in line with the credit-card company’s expectations as part of its latest quarterly financial update.  

“We’re seeing our customers act as they have acted in the past,” said CEO Steve Squeri on a conference call. “Our card members may say they don’t have any confidence in the economy, but they still continue to spend, and they’re not spending off what’s in the market.”

Italian luxury fashion brand Moncler was asked about its U.S. consumers in its earnings call Wednesday. “We were and are still more worried about the current and future stage of health of the American economy and of consumer confidence” than about tariffs, Chief Corporate and Supply Officer Luciano Santel said,

Jan Middelhoff, CFO of German toymaker Tonies (TNIE), called American consumers “very healthy” and said in the company’s earnings call earlier this month that toys are considered a “recession-resilient category.”

“The last thing parents are saving on are their kids’ presents or expenses for kids,” CEO Tobias Wann said. “Kids don’t care about tariffs, and I can tell you the average playtime last week was the same [as] the week before and the weeks before,.”

Middelhoff said in the call that he has confidence in the category and in American consumers, and also says he thinks liftoff to consumer sentiment will occur once the shock of the current market changes eases.

Federal regulators approved Capital One’s (COF) bid to become America’s largest credit card lender, signing off on the company’s purchase of Discover (DFS) on Friday.

The merger will combine two of the industry’s best-known names, making it the biggest credit card company when customers’ outstanding balances are combined. Some consumer advocacy groups had pushed regulators to block the transaction, arguing it would severely limit consumers’ options.

However, the Federal Reserve and Office of the Comptroller of the Currency disagreed, determining that the credit card market would remain competitive after Capital One and Discover’s merger. Their approval of the deal may lead to more banks buying each other, since the industry had seen the deal as a test of regulators’ appetite for approving those transactions.

Capital One CEO Richard Fairbank called it an “exciting moment” for the two firms. 

He’s described Discover as having the “holy grail”: being able to issue credit cards for consumers that they use on Discover’s own payments network. Doing so cuts out the fees that middlemen Visa and Mastercard earn with every swipe.

Why Did Regulators Approve the Merger?

Capital One and Discover ranked No. 4 and 5 in credit card loans in 2023, behind Chase, Citibank and American Express, according to Capital One’s presentation announcing the deal. But combining the two would suddenly make them the top credit card lender, with $250 billion in credit card loans.

Some consumer groups had fought against the merger, particularly its impact on credit card borrowers with lower credit scores. The merger “would reduce options for financially vulnerable customers and reduce the already limited competition on pricing for non-prime credit cards,” the National Community Reinvestment Coalition and 137 other community groups wrote in a letter to regulators last year.

The Fed rejected those concerns, saying options for subprime borrowers would only become “moderately concentrated” without raising concerns of a monopoly. The Fed said in its decision that some 2,000 companies offer cards to customers with limited credit history.

Jesse Van Tol, the president and CEO of the NCRC, said in a statement that federal regulators “got this one wrong” and called on state attorneys general to “intervene against the harmful, anticompetitive Capital One-Discover merger.”

The Department of Justice can also sue to block deals after bank regulators approve them. However, the New York Times reported this month that the DOJ does not see significant concerns. The Fed’s decision on Friday made that clear, saying that after the agency’s review, the DOJ “concluded that the proposal does not warrant an adverse comment.”

After Netflix (NFLX) delivered first-quarter earnings that topped Wall Street’s expectations, several analysts lauded the company’s ability to thrive amid economic uncertainty. 

Bank of America analysts said the streaming giant has shown “sustainable growth drivers” that could make the stock a strong defensive choice for investors. On the company’s earnings call, co-CEO Greg Peters said Netflix “has been generally quite resilient” during tougher economic times.

Netflix attributed its better-than-expected results in part to higher subscription and ad revenues, and Peters said the company expects to double its advertising revenue this year, as the company rolls out its ad tech suite. Jefferies analysts said Netflix “remains a top pick as the ad tier scales, price hikes flow through, and expectations remain achievable.”

Ahead of Thursday’s earnings report, Netflix executives reportedly said their goal is to double the company’s $39 billion in revenue last year by 2030. However, co-CEO Ted Sarandos cautioned analysts not to take it as an official forecast. 

BofA and Jefferies maintained bullish ratings and price targets of $1,175 and $1,200, respectively. KeyBanc analysts kept a target of $1,000, and Needham reiterated $1,126. Those estimates imply as much as 23% upside from Thursday’s closing price. (U.S. markets are closed Friday in observance of Good Friday).

Pets are cherished members of many families, and in some cases, they go beyond companionship to play an essential role in daily life. However, pet ownership can quickly become expensive, with costs accumulating for the many necessities that ensure their well-being.

Fortunately, there are certain situations where pet-related expenses may earn you a tax deduction. Understanding when and how to take these deductions can make a significant difference in managing the financial responsibilities of pet ownership.

Tax Deductions for Pet-Related Expenses

The cost of owning a pet can be high, but pet owners may be eligible to claim tax deductions in certain situations. Here’s when you might be able to claim deductions:

Business Use: If your pet is a working animal that generates an income, you may be eligible to deduct their care as a business expense. This includes food, grooming, medical care, and pet insurance.

“If your pet is generating income, like going viral on social media, being featured in paid content, or some other kind of show/competition animal, its expenses, such as vet bills, food, and even outfits, could be considered business expenses. In that case, you may be able to deduct them just like any other business-related costs,” said Jose A. Cruz, CPA and founder of Cruz Tax Advisory.

Service Animal: A service animal is a dog specifically trained to assist individuals with disabilities, performing tasks that help navigate daily life. Examples include guiding the visually impaired, alerting individuals to sounds, retrieving items, and reminding someone to take their medication. Because service animals are considered medically necessary for the individual’s well-being, related expenses such as food and veterinary care are tax-deductible.

Pet Fostering: Fostering pets for an animal shelter, typically a non-profit organization, provides an opportunity to claim a charitable contribution tax deduction. Limits apply, but pet-related expenses can be considered charitable donations, making them tax-deductible.

“If you foster pets for a registered nonprofit, you can deduct costs like food, supplies, vet care, and even part of your utilities if you use your home for fostering. These deductions count as charitable contributions,” Cruz said.

When Pet-Related Expenses Are Non-Deductible

There are common scenarios where pet owners cannot claim tax deductions, even if their pet plays a significant role in their lives. For example, if the pet is simply a companion, routine veterinary bills, food, grooming, and supplies are considered personal expenses and are not tax-deductible.

“Many people mistakenly think pet expenses like food, grooming, and vet visits are tax-deductible, but they’re considered personal costs and don’t qualify,” Cruz stated.

There may also be confusion around emotional support animals (ESAs), which people often assume are the same as service animals.

“The IRS doesn’t recognize ESAs the same way as service animals. Even if a pet provides emotional support, that alone doesn’t make its expenses deductible unless it meets the IRS criteria for a service animal under medical deductions,” Cruz explained.

This is in line with the Americans with Disabilities Act (ADA), which acknowledges that emotional support pets offer comfort and companionship, often to those with anxiety or depression, but does not consider them a medical necessity in the same way as a service animal.

This is because, unlike service animals, ESAs are not trained to perform specific tasks related to a person’s medical condition and only provide general emotional comfort.

The Bottom Line

Tax deductions for pets are generally limited to situations where the pet plays a functional role in certain activities. In these cases, expenses related to the pet’s care and maintenance may qualify for deductions. Tax deductions are not available for expenses related to pets that are simply for companionship.

As always, consult with a tax professional to ensure you make accurate claims and follow IRS guidelines.

UnitedHealth Group’s (UNH) outlook cut Thursday has raised concerns about its insurance peers, with several set to report earnings in the coming weeks.

The company on Thursday reported first-quarter results that missed estimates, and cut its profit forecast for 2025, pointing to higher-than-expected medical costs for people enrolled in Medicare plans.

UnitedHealth expected claims in its Medicare Advantage business to rise at a similar rate to 2024, but CEO Andrew Witty said in Thursday’s earnings call that “indications suggest care activity increased at twice that rate,” according to a transcript from AlphaSense.

Jefferies analysts said Thursday that UnitedHealth’s “peers are in trouble” if the bellwether‘s issues are applicable to insurance rivals. However, the analysts said it’s also possible UnitedHealth’s “expectations were materially more aggressive than peers.”

UnitedHealth shares lost over a fifth of their value on Thursday, in their worst day in decades. Other health insurance stocks were dragged down with it, as Humana (HUM) sank more than 7%, Elevance Health (ELV) fell 2.4%, and CVS Health (CVS) slid 1.8%.

Elevance is set to report earnings next Tuesday. Humana is scheduled to release its results the following Wednesday, with CVS’s report due a day later.