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The Department of Government Efficiency (DOGE) — an initiative led by Tesla CEO Elon Musk — was created to reduce wasteful spending and eliminate unnecessary regulations. But according to Musk, it could come with unexpected benefits for the American people.
“As it becomes clear that @DOGE is working, you will see the long-term Treasury bill yields fall,” Musk wrote in a recent post on X. “And all Americans will benefit from lower interest payments on mortgages, small business debt, credit card and other loans.”
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The idea seems to have struck a chord. As of this writing, Musk’s post has received 33.3 million views, 309,000 likes, and 12,000 comments.
Some users are enthusiastic. One top comment reads, “There is at least 150 basis points of premium priced-in to the 10Y Note Yield due to deficit spending. Eliminate deficit spending and rates go down for Americans.”
Musk’s claim isn’t entirely unfounded. If DOGE successfully cuts federal spending and reduces the deficit, it could theoretically lower borrowing needs and put downward pressure on Treasury yields.
However, the relationship isn’t so straightforward. Treasury yields are influenced by a wide range of factors, including overall economic conditions, Federal Reserve policy, and global demand for U.S. debt.
Moreover, the scale of potential savings remains uncertain. Responding to Musk, economist Peter Schiff wrote, “You are doing a great job at DOGE, but the cuts you make will not be enough to offset other spending increases and tax cuts.”
Navigating high mortgage rates: what homebuyers need to know
Over the past few years, Americans have felt the sting of high interest rates on their wallets. But those rate hikes were a necessary move — inflation soared to a 40-year high of 9.1% in June 2022, forcing the Federal Reserve to take aggressive action to cool the economy.
The Fed’s series of rate hikes drove up borrowing costs but successfully helped ease inflation. While the central bank began cutting rates toward the end of 2024, it has since held steady at a range of 4.25% – 4.50%, citing concerns that “inflation remains somewhat elevated.”
That’s not exactly good news for homebuyers. According to Freddie Mac, the average 30-year fixed mortgage rate currently sits at 6.87%, meaning borrowing remains expensive. If you’re in the market for a home, expect to pay significantly more in interest compared to pre-pandemic levels.
While it remains to be seen whether DOGE’s cost-cutting efforts will lead to lower mortgage rates, homebuyers still have options. Freddie Mac recommends shopping around, obtaining quotes from three to five lenders to secure the best possible mortgage rate possible. Even a small rate reduction can translate into significant savings over the life of a loan.
To make this process easier, places like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.
One of the key reasons people are drawn to real estate is the same factor keeping the Fed cautious about lowering rates — inflation. When inflation rises, property values often climb as the cost of materials, labor, and land increases. At the same time, rental income tends to rise, allowing landlords to benefit from a revenue stream that naturally adjusts with inflation.
These days, you don’t need to buy a house to start investing in real estate. For instance, platforms like First National Realty Partners (FNRP) allow accredited investors to own shares in grocery-anchored properties without the hassle of finding and managing deals themselves — with a minimum investment of $50,000.
FNRP properties are leased to national brands like Whole Foods, Kroger, and Walmart, which provide essential goods to their communities. With Triple Net Leases (NNN), investors can enjoy the potential to collect stable, grocery store-anchored income every quarter, without worrying about tenant costs cutting into the bottom line.
There are drawbacks and risks involved with real estate crowdfunding, like illiquidity, that ordinary investors should be aware of before they take the plunge.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Get the most out of your credit card
It’s no secret that high interest rates can make credit card debt a financial burden. If balances aren’t paid off in full, they can quickly snowball, making it harder to keep up with payments. As of November 2024, the average credit card interest rate stood at a staggering 21.47%, according to the Federal Reserve Bank of St. Louis.
Given these high rates, many financial experts stress the importance of paying off your credit card balance in full each month. Suze Orman, for example, warns: “If you can’t afford to pay off a credit card in full, then that is money that shouldn’t be spent.”
That said, credit cards remain a valuable financial tool when used responsibly. They can help build credit, offer perks like cash back rewards and airline miles, and even provide fraud protection.
With so many credit card options out there, finding the right one can feel overwhelming. But with CardRatings.com, it’s quick, easy and personalized. Whether you’re after cash back, travel rewards, a low APR or zero annual fees, their CardFinder matches you with the best offers from leading providers.
Take the guesswork out of credit card shopping — let CardRatings find your perfect match and recommend a card that maximizes your rewards, savings and benefits — all tailored to you.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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