U.S. stocks traded mixed midway through trading on Friday, with the Dow Jones Industrial Average gaining slightly while the Nasdaq Composite remained largely unchanged. The market movement occurred as crude oil prices fell 4% to $69.05 and economic data revealed a widening goods trade deficit. The University of Michigan consumer sentiment index showed a modest rise to 49.5 in June, though it missed market estimates of 50.

Market Performance

The Dow traded up 0.06% to 51,948.08, while the NASDAQ rose 0.01% to 25,359.30. The S&P 500 also gained, increasing 0.14% to 7,367.95. Sector performance was varied, with health care shares jumping 2.8% and industrials stocks falling 0.9%.

Economic Data

The goods trade deficit in the U.S. widened significantly to $105.8 billion in May from $83 billion in the prior month. This figure marked the widest gap in over one year and exceeded market estimates of an $85 billion deficit. Additionally, U.S. wholesale inventories rose by 0.3% month-over-month to $943.9 billion in May, compared to a 0.7% rise in the previous month and above market estimates of a 0.2% gain.

Commodities and Global Markets

In commodities, oil traded down 4% to $69.05, while gold traded up 1.2% at $4,096.00. Silver traded up 1.4% to $59.16, and copper rose 2.1% to $6.2025. European shares were lower, with the STOXX 600 dipping 0.9% and Germany's DAX declining 1.3%. Asian markets closed mostly lower, with Japan's Nikkei 225 dipping 4.15% and China's Shanghai Composite dropping 2.26%.

A new study by Bankrate reveals that 87% of American mortgage borrowers are likely overpaying for their home loans as of 2025, creating an annual financial drag of approximately $65 billion. This excess interest costs the typical borrower about $3,343 per household annually, which totals $78,186 over the life of a 30-year loan. The research identifies the issue as an access problem, where competitive rates exist but remain unseen by most borrowers, rather than a failure of the market itself.

The findings highlight that borrowers who purchased mortgages since 2022 could have saved significant amounts had they accessed platforms where lenders compete in real time on price. Bankrate CEO Matt Fellowes, the primary author of the study, noted that when lenders compete for a borrower’s business, the savings are meaningful and immediate, averaging $279 a month. The study emphasizes that the debt used to build wealth through homeownership currently weighs down Americans’ financial outcomes.

The research categorizes the overpayment issue into several key findings, including a wealth paradox where higher-middle-income households are most likely to overpay. It also details a "seniority tax" in the refinance market and a creditworthiness paradox where the most creditworthy borrowers are most likely to overpay.

Key Findings on Overpayment

The study breaks down the scale and demographics of the overpayment issue:

• Scale of the problem: 87% of borrowers likely overpay, costing roughly $11 billion annually on loans taken out in 2025 and $247 billion over the life of those loans. More than 90% of purchasing borrowers likely overpay, losing an estimated $3,656 per year, while refinance borrowers likely overpay 79% of the time, losing $2,462 annually.
• Wealth paradox: 82% of low-income borrowers likely overpay by an estimated $1,472 annually, compared to 90% of higher-middle-income households ($100,000–$200,000). Higher-middle-income borrowers surrender an estimated 23% of their total loan balance to avoidable mortgage costs over 30 years.
• Creditworthiness paradox: 91% of American mortgage holders in the lowest debt-to-income (DTI) quartile (below 33%) overpay. Borrowers in the second-lowest quartile (33% to 38%) post the highest segment rate at 92%.
• Conventional premium: Conventional borrowers overpay 89% of the time, with lifetime excess costs equal to 23% of their loan balance. This exceeds the overpayment rates for Federal Housing Administration (FHA) borrowers (83%) and Veterans Administration (VA) borrowers (81%).

Geographic and Demographic Variations

The study identifies significant geographic disparities in overpayment rates. Borrowers are most likely to overpay in Pennsylvania (90.2%), Oregon (90.1%), and New Hampshire (89.8%). However, the highest lifetime tax percentages—overpayment amounts relative to loan balances—are found in states like New Hampshire (23.0%), Illinois (23.0%), New Jersey (22.9%), and Florida (22.6%).

In the refinance market, the study notes a "seniority tax" where borrowers under 35 carry a lifetime tax equal to 14% of the refinanced loan balance. This figure grows steadily with age, reaching 20% for pre-retirement borrowers aged 55–64.

Methodology

Bankrate measured mortgage overpayments by comparing originations between 2022 and 2025 against offers on its mortgage marketplace. The model accounted for risk using 17 criteria, including down payment, loan size, and debt levels. Since FICO scores are not in the federal Home Mortgage Disclosure Act (HMDA) database, the study used public housing data from Freddie Mac and Ginnie Mae to estimate them. "Overpayment" is defined as the amount a borrower’s actual interest rate exceeded competitive market offers available for their profile, weighted by monthly origination volume.