As we enter the new year, it is a great time to reset, refocus, and look forward with optimism. We hope the coming weeks bring good health for you and your loved ones, meaningful moments together, and plenty of reasons to feel hopeful about what’s next.
Here’s a quick look at this month’s financial news.
Early housing market forecasts for 2026 are starting to make headlines. Many experts expect a gradual reset that could improve affordability, especially in markets where wage growth begins to outpace housing price increases. In other economic news, prescription drug costs could also see big changes next year, following commitments from several global drugmakers to offer discounted prices on selected medicines.
Home financing
A new era for future homebuyers
You may have already spotted some media headlines touting the “Great Housing Reset” along with opinions on how the residential housing market will evolve in 2026. While homebuyers are expected to start seeing an improvement in affordability, especially in areas where income growth outpaces home price growth, this will not happen overnight. Instead, a long and slow recovery is expected.
The reset will not make home buying affordable in the short term for many buyers under 30. They will likely have to continue erratic lifestyles, such as sharing accommodation, moving in with parents, or delaying having children.
While many consumers hope politicians will act to lower costs, the recent removal of the Pathway to Housing Act from the National Defense Authorization Act (NDAA) will significantly delay federal housing reform.
Here are other predictions for 2026:
Mortgage rates will continue to fall but will remain high compared to the pandemic era. The weak labor market is expected to lead to further interest rate cuts by the Federal Reserve.
Home sale prices are expected to rise only 1% year over year, as still-high mortgage rates and a weak economy will limit demand.
Existing home sales are expected to rise 3% by the end of 2026. Although this represents an improvement, there will still be many buyers who are out of the market or concerned about a stalled job market.
Properties in New York City’s suburbs, such as Long Island, Fairfield County, northern New Jersey and the Hudson Valley, are expected to attract more buyers. Other cities expecting more transactions include Cleveland, St. Louis, Minneapolis and Madison.
Rising insurance costs and a return to the office will cool some previously hot markets. These include coastal Florida, along with Austin, San Antonio, Texas, and Nashville, Tennessee. People who need to sell may have to bear the loss.
Source: redfin.com
insurance
Most small business owners are uninsured
While the typical small business owner understands profit and loss statements and employee management, some do not properly understand the importance of insurance. A new study finds that many would drop their coverage if they needed to cut expenses.
Even more alarming is that 55% of business owners do not have insurance because of its price. More than one in two (51%) would cut back or stop insurance altogether if their budget was too tight, and 10% said they think spending all of their insurance is a waste.
Low confidence may stem from a lack of knowledge about insurance coverage for their business. Of the business owners surveyed, 39% said they have a business insurance policy they don’t fully understand. 15% of respondents said they were “not sure” why they would buy insurance, even though it could protect them from a range of unexpected expenses.
Expenses and economics are also a challenge for business owners. Most (58%) cited the economic downturn as the biggest threat to their business right now. Business owners reported spending an average of $1,355 on commercial insurance annually, and 17% said their premiums increased in the past year, with an average increase of $499.
If you are a business owner and have concerns about insurance, visit Small Business Administration website To learn more.
Source: propertycasualty360.com
In the news
Pharmaceutical companies agree to reduce drug prices
Several of the largest drugmakers in the United States and Europe have recently signed deals to voluntarily sell their drugs for a lower cost. This is part of the Trump administration’s efforts to link drug prices in the country to cheaper prices abroad.
On average, Americans face prescription drug prices that are three times higher on average than those abroad, according to a 2024 study by the RAND Corporation. The report found that prices for some brand-name drugs were more than four times higher.
Pharmaceutical companies that have agreed to the deal include Merck, Bristol-Myers Squibb, Amgen, Gilead, GSK, Sanofi, Roche’s Genentech, Boehringer Ingelheim and Novartis. In return, the companies agreed to a three-year grace period during which their products would not be affected by the drug tariffs. Pharmaceutical companies also agreed to continue investing in American manufacturing.
One particularly important pledge is that Bristol-Myers Squibb will provide Eliquis, its popular blood thinner and top-prescription product, free of charge to Medicaid. Others pledged to provide medicines at discounted prices through direct-to-consumer channels.
The pledges come in response to letters sent by President Trump to drug makers in July, calling on them to lower prices as part of a “most favored nation” policy.
Source: cnbc.com
Credit and consumer finance
Why debt collectors are becoming busier
Consumer debt has been rising over recent years, driven by inflation and exacerbated by slowing wage growth. This has made debt collection agencies even more busy. There’s an additional reason for increased debt collection activity: downsizing the Consumer Financial Protection Bureau (CFPB).
Prior to 2025, the CFPB has brought numerous enforcement actions to stop illegal debt collection practices. However, current Acting Director Russell Vought ordered mass firings and budget cuts resulting in the closure of most CFPB operations.
The three largest collection companies file more than 1 million lawsuits a year against consumers to get them to pay. Some have put AI tools to work so that they can increase the number of cases brought before their lawyers while reducing operating costs.
Despite the increase in collection activities, the CFPB issued a public request for information on whether the number of debt collection firms under its oversight would be reduced by more than 85%. As of December 2025, no decision has been made.
If you know someone who is currently dealing with a debt collection company, or receiving calls, Review this article before responding to any settlement request. Because some debts are resold from the original debtor to the collector, this may result in collection efforts for non-existent debts.
Source: Forbes.com
Did you know?
What you need to know before you co-sign a loan
You may be asked to co-sign a personal loan for a family member or close friend, especially if you have a strong credit score. Co-signing is a popular strategy when a teen or young adult needs a car of their own but has not yet built a credit history. Co-signers also appear on student loans and some debt consolidation loans.
If you’re considering being a co-signer on a loan, here are some pros and cons to consider. First, here are some positives.
While co-signers will not see their credit score skyrocket when the co-signed loan is paid on time and in full, people who need help will build a credit score. This will help them qualify for future loans on their own.
Also, some lenders (but not all) may eventually remove a co-signer. Personal loans typically require a certain number of on-time payments before the lender will reevaluate the situation.
Now for the potential risks faced by co-signers. Because they are equally responsible for the entire loan amount, including any late fees or collection costs, co-signers may find themselves making one or more payments if the person receiving assistance has an unexpected cash flow problem or loses a job.
The co-signer will also see your loan and payment history listed on future credit reports. Failure by a borrower to make a payment can cause a co-signer’s credit score to drop, and more than one can do significant damage.
If you’re considering being a co-signer, be sure to have a conversation with your borrower that includes setting ground rules to prevent misunderstandings and possible missed payments. Ideally, the borrower should have a backup method for payments.
If you have questions about co-signing on a loan, contact me so we can discuss possible alternatives.
Source: nerdwallet.com
