The pandemic has upended the economy and disrupted financial and life plans for many people. As we start to see some light at the end of the tunnel, several trends are emerging that could impact your finances in the coming years. Here are a few key trends to watch out for.
Student loan borrowers should be checking interest rates
It’s no secret that student loan debt is a huge burden for many Americans. In fact, it’s estimated that there are over 44 million Americans with student loan debt, totaling more than $1.75 trillion. And with the cost of college continuing to rise, it’s likely that even more people will find themselves buried in debt in the coming years.
Fortunately, there are options available if you’re struggling with student loan debt. One option is to refinance student loans at a lower interest rate. A good option if you have high-interest rate private student loans, refinancing can help reduce monthly payments and enable you to pay off debt quicker.
Now is a good time to start shopping around if you’re considering refinancing your student loans. Rates are still relatively low, and there are a number of lenders offering competitive rates. Keep in mind however, that rates could continue to rise as the Fed is expected to keep raising interest rates, so it’s important to lock in a low rate as soon as possible.
Home prices will continue to rise
If you’re thinking of buying a home in the next few years, there’s one financial trend you should be aware of: prices are expected to continue to rise. According to a recent report, the average home price is projected to increase by 5.3% per year through 2022. This is good news for sellers, but it may make it more difficult for buyers to find affordable homes. The report also found that the number of homes available for sale is not keeping up with demand, so competition is likely to remain strong. If you’re considering buying a home, it’s important to start saving now so that you can stay ahead of the trends.
The stock market will become more volatile
Anyone who’s been following the financial news lately knows that market volatility is back with a vengeance. After a decade of relative stability, the stock market has been on a wild ride over the past year, and experts believe this trend is here to stay. In fact, some analysts are predicting that the next few years will be even more volatile than the last. While this may sound daunting, there are some silver linings to this trend.
For one thing, increased volatility often leads to greater opportunities for profits. So, if you’re willing to take on a little extra risk, you may be able to reap some financial rewards. Additionally, volatile markets can create bargains for long-term investors. If you’re patient and carefully pick your investments, you may be able to scoop up some great deals during market turbulence.
Keep an eye on these trends as we move through 2022 and beyond. They could have a big impact on your financial wellbeing.