Consumer News: Amid catastrophic fire damage in Los Angeles, there’s emotional trauma

Here's what to do if the power goes out

By Mark Huffman of ConsumerAffairs

• Winter is here with its cold temperatures and frigid wind chills, causing many of us to shiver just thinking about the weather.

• The forecast is calling for cold Arctic air to hit much of the U.S. from the Midwest to the Northeast and these frigid conditions could keep their grip on the weather into next month.

• This weather can be dangerous, bringing an increased threat of frostbite and hypothermia.

A powerful winter storm sweeping across the eastern half of the country this week is delivering a harsh reminder that winter can be more than just inconvenient it can be life-threatening.

Forecasters say Arctic air is plunging temperatures well below normal across much of the Midwest and Northeast, with bitter wind chills making conditions feel even colder.

As the storm system moves east, snow, ice, and dangerously low temperatures are expected to disrupt travel, strain heating systems, and increase the risk of cold-related illnesses. Emergency officials are urging people to limit time outdoors and take extra precautions to protect themselves, their families, and their neighbors.

Weather forecasters warn that wide areas of the Mid-Atlantic region could face heavy icing, bringing down trees and powerlines.

Dangers to the old and young

The American Red Cross warns that prolonged exposure to extreme cold can quickly lead to frostbite or hypothermia, especially among older adults, young children, and people without adequate heat. To reduce those risks, the organization recommends several practical steps to stay safe during severe winter weather.

Stay warm and seek shelter if needed. If your home becomes too cold due to heating problems or power outages, go somewhere warm, such as a public library, shopping mall, or a designated warming center.

Heat your home safely. Space heaters and fireplaces can help, but they must be used with care. Keep anything that could catch fire at least three feet away, and never leave heating devices unattended.

Avoid open flames. Candles increase the risk of house fires. Battery-powered flashlights or lanterns are a much safer alternative during power outages.

Watch out for carbon monoxide. This invisible gas can be deadly. Never use ovens, grills, camp stoves, or generators indoors or near windows. If you feel dizzy, weak, or nauseated, get outside to fresh air immediately and call for help.

Look out for neighbors

Check on others. A quick phone call, text, or knock on a neighbors door can make a critical difference, especially for people who live alone or may need assistance.

Be cautious on snow and ice. Slips, falls, and crashes are common during winter storms. Avoid travel if possible, but if you must drive, slow down, increase following distance, and keep an emergency kit in your vehicle.

Dress for the cold. Wear multiple loose layers, along with a warm coat, hat, mittens, and water-resistant boots. Cover exposed skin with a scarf to protect your face from wind and cold.

Dont overexert yourself. Shoveling snow can be strenuous and dangerous. Take frequent breaks, work at a steady pace, and stop immediately if you feel chest pain, dizziness, or shortness of breath.

Warning signs

Know the warning signs. Frostbite often affects fingers, toes, ears, and the face, causing numbness or changes in skin color. Hypothermia symptoms can include shivering, confusion, slurred speech, and extreme fatigue. If you notice these signs, get out of the cold and seek medical care right away.

Use technology to stay informed. The Red Cross offers free mobile apps that provide first aid guidance, weather alerts, and information on open shelters, available in both English and Spanish.

With dangerous cold expected to linger, safety experts say preparation and awareness are the best defenses. Taking a few simple precautions now can help prevent emergencies and keep communities safer through the worst of winters grip.

The precious metal hit yet another record high on Tuesday

By Mark Huffman of ConsumerAffairs

• Gold prices hit new multi-year and record highs this week as investors pour into the safe-haven metal.

• Geopolitical tensions and renewed trade risks, especially U.S. tariff threats tied to Greenland, are cited as key triggers.

• Analysts are divided on sustainability: some see ongoing structural support while others warn of potential corrections if macro conditions shift.

Gold prices surged sharply this week, with bullion climbing to unprecedented levels as markets grapple with heightened geopolitical and economic uncertainty. In trading ahead of the World Economic Forum, gold soared above $4,800 per ounce, a new record, as investors moved away from risk assets into traditional safe havens.

The rally was broad-based: major benchmarks in the Middle East and Asia also recorded historic highs, and silver and other precious metals followed suit. In Dubai, retail gold jumped sharply, reflecting the broader international trend. On Wednesday, there was no immediate sell-off as gold edged slightly higher than Tuesday's close.

Drivers behind the surge

Market analysts point to a confluence of factors fueling the recent surge:

• Geopolitical risk: President Donald Trumps tariff threats against several European countries in an effort to pressure negotiations over Greenland have roiled markets, driving investors toward gold as a hedge against political disruption and trade instability.

• Safe-haven demand: Global equities and bond markets weakened amid rising trade tensions and volatility, reinforcing golds role as a refuge in times of stress.

• Dollar and rate dynamics: A softer U.S. dollar and expectations of accommodative monetary policy have reduced the opportunity cost of holding non-yielding assets like gold.

• Structural factors: Central bank purchases and sustained investment demand, including flows into gold exchange-traded products, have helped underpin prices after a dramatic rally in 2025.

Is the rally sustainable?

Forecasts vary widely on the sustainability of golds current surge:

• Bullish views: Some analysts argue that the fundamental forces supporting gold remain intact. Continued geopolitical uncertainty, ongoing central bank accumulation, and persistent demand from both institutional and retail investors could keep prices elevated through 2026 and possibly beyond. Major banks have even raised forecasts that anticipate gold approaching $5,000 per ounce later this year.

• Cautionary signals: Others warn that the extraordinary run could invite corrections if macroeconomic conditions change. A resurgent U.S. dollar, stronger economic growth, higher interest rates, or a resolution of key geopolitical flashpoints could dampen safe-haven flows and reduce speculative demand. Gold historically also experiences periods of fatigue when investors rotate into other assets.

What investors should watch

Market watchers say the next few months will be critical for golds trajectory:

• Central bank policy decisions, especially from the Federal Reserve, remain pivotal in shaping risk appetite and real yields.

• Geopolitical developments, including trade negotiations and global security concerns, will continue to influence demand for safe havens.

• Market sentiment and technical factors, such as ETF flows and positioning by large speculators, can amplify short-term moves.

Whether golds breakout this week marks the start of a sustained bull market or a temporary spike driven by headline risk, the metals performance highlights the deep uncertainty in global markets early in 2026.

But affordability continues to be the wild card

By Mark Huffman of ConsumerAffairs

• Experts expect U.S. mortgage rates to remain largely above 6% through 2026, with only modest declines compared with 2025.

• Economic uncertainty and Treasury yields not just Federal Reserve policy will heavily influence how far and fast rates fall.

• Regional and market differences mean some buyers could see affordability improve faster than others.

As 2026 gets underway, the outlook for U.S. mortgage rates points to a year of relative stabilization rather than dramatic decline, economists and industry analysts say. After the long climb to historically high levels in recent years, most forecasts suggest the average 30-year fixed mortgage rate will cluster around the low 6% range, offering modest relief compared with recent peaks but not a return to pandemic-era lows.

Major forecasting agencies, including Fannie Mae, the National Association of Realtors (NAR), and the Mortgage Bankers Association, project 2026 rates averaging roughly 6.0%6.3% only slightly below where they stood at the start of the year. Some scenarios envision rates dipping just below 6% by years end if inflation continues to cool and market conditions remain favorable.

Whats driving the rate outlook

Mortgage rates dont move in lockstep with Federal Reserve policy, and experts caution against assuming that Fed rate cuts alone will bring deep decreases. Instead, long-term Treasury yields which mortgage rates tend to follow and broader economic signals like inflation and job growth will be central to rate behavior in 2026.

If you find the right home and can afford the monthly payments, you should take the opportunity in front of you, Greg Schwartz, CEO of Tomo Mortgage, told Forbes. If rates decline, competition will increase. More buyers will reenter the market, sellers will regain leverage, and prices will follow.

Affordability still an issue

A key silver lining for homebuyers is that even modest rate declines could improve affordability especially when combined with slower home price growth and rising incomes, forecasts suggest. Some housing market analysts foresee that monthly mortgage payments could become measurably more manageable compared with previous years, even if rates stay above 6%.

Regional disparities are also expected. Markets with higher inventory and slower price growth might see sharper improvements in buyer access and affordability than high-demand urban areas.

Market reactions and volatility

Although the broader trend points toward a relatively stable 2026, short-term volatility remains possible. Recent movements in mortgage rates have shown the impact of political, economic, and global influences: markets briefly saw rates dip below 6% after major mortgage-backed securities purchases, but they have also climbed in response to geopolitical and financial developments.

For prospective homebuyers and those considering refinancing this year, the message from experts is one of measured optimism. Rates are likely to remain elevated by historical standards meaning borrowing costs wont fall back to ultra-low levels but are also unlikely to spike sharply higher absent unexpected economic stress.

As a result, buyers may find more manageable mortgage costs in 2026 compared with the last two years, especially if they lock in rates and dont wait for a rate trough that may never arrive.

The move is designed to increase supply for homebuyers and lower prices

By Mark Huffman of ConsumerAffairs

• President Trump signed an executive order aimed at blocking private equity firms from purchasing single-family homes, framing the move as a way to ease housing costs for families.

• The order directs federal regulators to redefine large-scale investor activity in residential housing and restrict access to federally backed financing for such purchases.

• Industry groups warned the measure could disrupt rental markets, while housing advocates praised it as a long-awaited intervention.

Investors have always purchased homes as rental property to provide an extra income stream. But the practice went into overdrive during the 2009-10 housing market crash, when foreclosures flooded the market with cheap single-family homes.

Private equity firms moved in with cash and scooped up many of the homes, effectively taking them off the market and keeping home prices high. Now, thats about to change.

President Donald Trump has signed a sweeping executive order banning private equity firms and other large institutional investors from buying single-family homes, a move the White House said is designed to curb rising housing costs and restore access to homeownership for middle-class Americans.

The order directs the Treasury Department, the Federal Housing Finance Agency, and the Department of Housing and Urban Development to take coordinated action to prevent private equity firms from acquiring single-family homes. Among other steps, the administration will bar such firms from using federally backed mortgages, restrict bulk purchases of homes financed through government-linked programs, and require enhanced disclosure of residential real estate holdings by large investment entities.

New data reveal the market is already shifting back to favoring buyers.There were an estimated 47.1% more home sellers than buyers in the U.S. housing market in December (or 631,535 more, in numerical terms)the largest gap in records dating back to 2013, according to real estate broker Redfin.Thats up 7.1 percentage points from a month earlierthe largest monthly increase since September 2022and up 22.2 percentage points from a year earlier.

Small landlords not affected

Administration officials said the policy is narrowly targeted at large-scale investors and does not apply to small landlords or individuals who own a limited number of rental properties. The White House also emphasized that the order would not force firms to sell existing holdings, though it encourages agencies to study incentives for divestment over time.

Housing advocates applauded the announcement, saying institutional investors have distorted local markets, particularly in fast-growing metropolitan areas. However, the private equity industry reacted sharply.

Trade groups warned that restricting investor participation could reduce the supply of rental housing and lead to higher rents, especially in communities where homeownership rates are already low.

Economists were divided on the likely impact. Some said the order could modestly increase housing availability for first-time buyers, while others cautioned that broader affordability problems including limited new construction and high interest rates would remain unresolved.

The executive order takes effect immediately, though legal challenges are widely expected.

Similar to the VW "Dieselgate" scandal, it's a black eye for Benz.

Mercedes-Benz will pay a $150 million settlement for concealing emission-cheating devices on its cars and trucks. Consumers who owned one of the affected models will get $2,000 each.

In the settlement with 48states and two U.S. territories, prosecutors said that Mercedes manufactured, marketed,advertisedand distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices thatoptimizedemission controls during emissions tests, while reducing those controls outside of normal operations.

The states allege the defeat devices enabled vehicles to farexceedmanylegallimits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet whilecomplying withapplicable emission standards.

Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as environmentally-friendly and in compliance with applicable emissions regulations.

Time to pay up

Thesettlement requires Mercedes-Benz to pay $120 million to the statesimmediatelyupon the effective date of the settlement. Anadditional$29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.

The consumer relief program extends to the estimated 39,565 vehicles,which as of Aug.1, 2023,had not been repaired or permanently removed from the road in the United States. Mercedes must bear the cost of installing approved emission modification software on each of theaffected vehicles. The company must provide consumers with an extended warranty and will pay consumers $2,000 per subject vehicle.

The company must alsocomply withreporting requirements and reforms toitspractices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentationsregardingemissions and compliance.

Todays settlement follows similar settlements reached previously between the states and Volkswagen, FiatChryslerand German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

Read the complainthereand the judgementhere.