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Rising costs continue to make news as we close out the year, with everything from insurance premiums to groceries putting pressure on household budgets. Some food costs have even spiked significantly compared to last year. The job market has shown mixed signals as well, with unemployment edging higher even as monthly job gains continue.
Despite the broader economic uncertainty, the housing market showed signs of renewed activity this fall. Buyers responded quickly when mortgage rates dipped, leading to an uptick in new listings and a noticeable rise in pending sales. It's a reminder that even small rate improvements can create real movement—and real opportunity—for buyers and sellers.
Home Financing
When Mortgages Are Too Good to Leave Behind
A recent survey of homeowners with mortgages proved how consumer opinions about housing continue to change and evolve. It also told us that potential home buyers may have more challenges than affordability, according to current homeowners' plans. This is because only around 20% of mortgage holders are considering moving or selling. People have been increasingly staying put for decades; annual relocations have gone from 20% in 1985 to less than 10% in 2025.
In addition, most survey respondents said that they didn't want to lose their current mortgage rate, even though only 26% of them have a rate under 4.00%. This didn't mean that these homeowners agreed with this year's real estate scenario. Almost nine in ten (88%) believed that home prices are too high, and 82% felt the same about mortgage interest rates.
While home equity numbers have been breaking records, with national equity figures rising to $17.5 trillion in late 2024, the survey participants were largely uninterested in tapping into theirs. Only 17% have considered a home equity line of credit (HELOC) or a cash-out refinance. However, 40% of these homeowners are confident that their home equity will support their long-term financial goals.
If you would like an estimate of your home's current equity, or strategies for buying your first home, contact me so we can discuss your options.
Source: empower.com
Insurance
Save With an Annual Insurance Audit
Consumer insurance costs continue to rise, and you may be reminded of this each time you receive a renewal notice. For example, the cost of full-coverage auto insurance rose 26% in just one year, while national homeowners' insurance costs have spiked 40.4% in six years.
Adopting a five-step annual insurance "audit" can help you keep track of costs and find ways to keep premiums lower.
A Is for Assemble Your Documents. Schedule some time to gather all your insurance-related papers, from sales booklets to receipts. Reviewing them in paper form can make it easier, so you may want to print out any digital documents.
U Is for Understand Your Coverage. Read the fine print and review all coverage limits. Be sure you understand how your deductibles work, as they're the amount you'll need to pay for covered services, such as roof repairs or vehicle replacement, before your insurance kicks in.
D Is for Dig for Discounts. Find other providers for each type of insurance and compare prices and discounts. Be sure to search for discounts offered by your employer, church, military service or other group.
I Is for Investigate Customer Service. Check out your current providers on the Better Business Bureau website or a popular review site. Reviewing service standards can help you ensure that your next claim experience is a positive one. Be sure to call your current providers with policy questions if you haven't filed a claim with them yet, to see if you're happy with their response times and accuracy.
T Stands for Tailor to Your Needs. If you've recently changed jobs or moved, or plan to do so in the next few months, this will probably affect your insurance costs. Discuss these changes so you can make sure you're not under- or over-insured. Another strategy: ask for additional quotes. For example, if your loss coverage is $500,000, asking for pricing for $300,000 and $750,000 may improve your coverage.
Source: forbes.com
In the News
Holiday Spending Predictions Mixed
The economic shifts seen during the last few months have already affected consumer shopping plans. High-income consumers are trading down, Generation Z (aged 13 to 28) is spending less, and low-income shoppers are struggling.
While the Federal Reserve Bank of Atlanta's GDPNow tracker is projecting 4% U.S. gross domestic product (GDP) growth in the third quarter of 2025, there are cracks showing in the economy. Consumer sentiment recently slipped to record lows, and the economy continues to lose jobs.
Here are some indicators of how certain income groups will adjust their shopping habits for the 2025 holidays.
High-income shoppers are hunting for deals, with a recent survey finding that 24% of respondents earning $100,000 or more are planning a frugal holiday season. This is good news for dollar store chains and Walmart, but bad news for big-box stores like Best Buy that are losing business to shopping clubs like Costco.
Generation Z and Millennials are also reducing their spending budgets as they deal with a slowing job market, rising unemployment and the resumption of student loan collections.
In weakening economies, younger people often reduce spending earlier than older groups because they have less money in savings and worry about job security. A senior economist for hiring site Indeed.com noticed that unemployment rates for workers aged 25 to 34 years old hit 4.4% in August. This is higher than the 3.5% rate for the 35- to 44-year-old age group, and the 2.9% rates for workers aged 45 and up.
These numbers don't mean that Black Friday shopping will suffer. Mark Mathews, chief economist for the National Retail Federation, said that a recent NRF survey found that more shoppers are "holding off" for Black Friday sales than a year ago. Consumers are also spending less on other non-essentials, such as eating out, so they'll have more cash for gifts.
Source: cnbc.com
Credit and Consumer Finance
Consumers Use Fintech Tools to Manage Stress
Digital financial tools such as online bill payment services, payroll advances, and tax filing applications are more popular than ever. Around 78% of Americans are now using fintech tools, which is a 20% increase since 2020.
During a recent survey, users claimed that using them makes them feel more confident about their money management skills. They're one way that Americans are coping with economic anxiety. Almost 70% worry about the economy in general, 76% feel that their income doesn't go as far as it did in 2024, and worries about job security have grown.
In addition to increased confidence, fintech tools help users save time and money while providing educational opportunities. This has resulted in 85% of consumers using them to cut down on discretionary spending (43%), reduce essential expenses (38%), and prioritize their savings (36%). Overall, 61% of consumers credit financial technology for helping them weather the last few years of economic challenges.
Source: thefinancialbrand.com
Did You Know?
The Hidden Expenses of Home Ownership
If you're considering buying your first home, you may be following mortgage interest rates and researched other costs as well. However, there are other expenses involved in home ownership, and they're on the rise.
This year, the median costs for homeowners across the nation increased to almost $16,000 annually. Rising homeowners insurance premiums were the main driver for these costs, surging by 4.7% since last year, and by 48% since early 2020. Maintenance costs and property taxes also made up many of these costs.
Homeowners in high-cost areas, such as New York City, San Francisco, and Boston all paid well over the $16,000 national average, paying up to $24,381. Homeowners with the biggest increases in homeowners insurance live within several popular Florida metro areas, such as Miami, Jacksonville, Tampa and Orlando.
If you're wondering what other costs may be involved in home maintenance, these could include lawn care, heating and air conditioning maintenance, tree trimming and removal, carpet and window cleaning, and water heater maintenance. If your home has a deck, fireplace, and/or sprinkler system, these could increase your maintenance costs.
While some of these costs may seem unnecessary, it's ultimately better to plan ahead for maintenance costs for a home's major systems — plumbing, electric, heating and cooling — rather than pay for repairs or replacement.
If you're considering buying a home but would like to estimate its maintenance costs, contact me so we can take a closer look.
Source: nationalmortgageprofessional.com
