What to watch for in '07.

Should you redo the kitchen, take a vacation, or save money for retirement? Those decisions aren't easy unless you have a personal fortune-teller who can predict whether your finances will be roiled by high fuel prices or inflation.

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Fortunately, the big picture looks fairly bright. In a recent survey by the National Association for Business Economics, 50 economists and business prognosticators said they expect inflation to drop this year and oil prices to be a little less than they were in 2006 (about $60 a barrel).

Here are some other trends that could affect you and what to do about them:

THE HISSING BUBBLE

Housing prices should bottom out later this year, says the NABE survey, and, of course, there's no way to know how soon prices will rebound.

What to do. If you have a 5/1 hybrid adjustable-rate mortgage, which has a fixed rate for five years before turning into a variable rate, you can sit tight, especially if you think you'll move before it adjusts. If your ARM payments are already climbing or you opted for a mortgage that doesn't reduce the principal, refinance to a 3/1 hybrid. Try your current lender first; it might be willing to streamline the process and keep fees low. Finally, if you are selling soon, get real about the price and forget about that whopping profit your former neighbor made just last year.