As we step into a new year, it’s a great time to reset, refocus, and look ahead with optimism. We hope the weeks ahead bring you and your loved ones good health, 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 predictions for the 2026 housing market are starting to make headlines. Many experts expect a gradual reset that could lead to improved affordability, especially in markets where wage growth begins to outpace rising home prices. In other economic news, prescription drug costs may also see meaningful changes in the year ahead, following commitments from several global drugmakers to offer discounted pricing on select medications.
Home Financing
New Era for Home Buyers Ahead
You may have already spotted some media headlines touting “The Great Housing Reset” together with opinions on how the residential housing market will evolve in 2026. While it’s predicted that homebuyers will begin to see affordability improving, especially in areas where income growth outpaces home-price growth, this won’t happen overnight. Instead, a long, slow recovery is expected.
The reset won’t make homebuying affordable in the short run for many buyers under 30. They will probably have to continue their spartan lifestyles, such as sharing accommodations, moving in with parents, or delaying having children.
While many consumers hope that politicians will act to lower costs, the recent removal of the ROAD to Housing Act from the National Defense Authorization Act (NDAA) will delay significant federal housing reform.
Here are other predictions for 2026:
Mortgage rates will continue to decrease but remain high relative to the pandemic era. A weaker labor market is expected to lead to more interest rate cuts by the Federal Reserve.
Home sale prices are only expected to rise by 1% year-over-year, because still-high mortgage rates and a weaker economy will curb demand.
Sales of existing homes will rise by 3% by the end of 2026. While this is an improvement, there will still be many buyers priced out of the market or concerned by the stalled labor market.
Properties within the New York City suburbs, such as Long Island, Fairfield County, Northern New Jersey and the Hudson Valley are expected to draw more buyers. Other cities expecting more transactions include Cleveland, St. Louis, Minneapolis, and Madison.
Surging insurance costs and a return to the office will result in some formerly hot markets going cooler. These include coastal Florida, along with Austin and San Antonio, Texas and Nashville, Tennessee. People who need to sell may be forced to take a loss.
Source: redfin.com
Insurance
Most Small Business Owners are Uninsured
While the typical small business owner understands profit and loss statements and managing employees, some are unaware of the importance of being properly insured. A new survey found that many would drop their coverage if they needed to cut expenses.
Even more worrisome: 55% of business owners don’t have insurance because of its price tag. More than one in two (51%) would reduce or drop insurance entirely if their budget got too tight, and 10% said they believe their entire insurance spend is a waste.
Low confidence might stem from a lack of knowledge about their business insurance coverage. Of the business owners surveyed, 39% said they have a business insurance policy they don’t fully understand. And 15% of respondents said they were “not sure” why they even purchased insurance, although it could protect them from an array of unexpected expenses.
Expenses and the economy are also challenging business owners. Most (58%) cited an economic downturn as the biggest threat to their business right now. Business owners reported spending an average of $1,355 on business insurance annually, and 17% said their premiums have increased in the last year, with an average increase of $499.
If you’re a business owner with concerns about insurance, visit the Small Business Administration’s website to learn more.
Source: propertycasualty360.com
In the News
Pharmaceutical Companies Agree to Lower Drug Prices
Several of the largest U.S. and European-based drugmakers recently signed deals to voluntarily sell their medications for less. This is part of the Trump administration’s efforts to link the nation’s drug prices to cheaper ones abroad.
On average, Americans are faced with prescription drug prices that are an average of three times higher than overseas, according to a 2024 study by RAND Corporation. Prices for some branded drugs were more than four times higher, the report found.
Pharmaceutical companies that agreed to the deal include Merck, Bristol Myers Squibb, Amgen, Gilead, GSK, Sanofi, Roche’s Genentech, Boehringer Ingelheim and Novartis. In exchange, the companies agreed to a three-year grace period during which their products won’t be affected by pharmaceutical-specific tariffs. The drugmakers also agreed to continue to invest in U.S. manufacturing.
One particularly important pledge: Bristol Myers Squibb will offer Eliquis, its blockbuster blood thinner and top-prescribed product, for free to Medicaid. Others have pledged to provide discounted medications through direct-to-consumer channels.
These pledges are in response to letters President Trump sent to drugmakers in July, calling on them to lower prices as part of his “most favored nation” policy.
Source: cnbc.com
Credit and Consumer Finance
Why Debt Collectors Have Become Busier
Consumer debt has been rising over the past years, fueled by inflation and worsened by sluggish wage growth. This has resulted in busier debt collection agencies. An additional reason for increased debt collection activities: the downsizing of the Consumer Financial Protection Bureau (CFPB).
Before 2025, the CFPB filed many enforcement actions to stop illegal debt collection practices. However, current Acting Director Russell Vought has ordered mass firings and budget cuts that have shut down most CFPB operations.
The three largest collection firms are filing more than one million lawsuits a year against consumers to get them to pay up. Some have put artificial intelligence tools to work so they can increase their attorney’s caseloads while reducing their operating costs.
Despite increasing collection activities, the CFPB issued a public request for information on whether to reduce the number of debt collection companies under its supervision by over 85%. As of December 2025, no decision has been made.
If you know someone who’s currently dealing with a debt collection company, or are receiving calls, check out this article before responding to any demand for settlement. Since some debts are resold from the original debtor to a collector, this can result in collections efforts being made for a non-existent debt.
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 a close friend, especially if you have a solid credit score. Co-signing is a common strategy when a teenager or young adult needs a vehicle of their own but hasn’t 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 keep in mind. First, here are some positives.
While co-signers won’t see a major rise in their credit score when a co-signed loan is paid on time and in full, persons requiring assistance will be building a credit score. This will help them qualify for future loans on their own.
Also, some lenders (not all) may eventually remove a co-signer. Personal loans typically require a certain number of on-time payments before a lender will reassess the situation.
Now for the possible risks faced by co-signers. Since they’re 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 being assisted has an unexpected cash flow problem or loses a job.
A co-signer will also see the loan and payment history included in future credit reports. A missed payment by the borrower can bring down a co-signer’s credit score, and more than one can do considerable damage.
If you’re considering being a co-signer, be sure to have a conversation with the borrower that includes setting ground rules to prevent misunderstandings and the possibility of missed payments. Ideally, the borrower should have a backup method for payments.
If you have questions about co-signing a loan, contact me so we can discuss possible alternatives.
Source: nerdwallet.com