The news: Sixty-four percent of Gen Z and 65% of millennial homebuyers say their financial well-being will depend on their ability to refinance to a lower interest rate in the future, per Truework’s “The State of Homebuying in America” report. But if rates don’t significantly drop over the next few years, these customers’ mortgages could be at risk of defaulting. Our take: Financial institutions (FIs) can step in to help young homeowners navigate their mortgages while they await rate changes. FIs can start by offering automated refinance alerts, enhancing digital transparency and providing a homeownership/homebuying educational hub.

Borrowers struggling with inflation and rising interest rates can pay just the interest on their loans for up to six months—with no implications.