Sen. Marsha Blackburn, R-Tenn., Reacts to How the Biden Administration Seeks to Fight Inflation in “The Evening Edit.”
The majority of Americans are delaying financial milestones and even dropping certain events and activities due to the current state of the economy.
According to a new Bankrate survey, 53% of Americans have had to put off things like home improvements and renovations as well as buying or leasing a car.
Meanwhile, 58% of Americans had to miss certain activities such as postponing vacations and turning down dinners with family or friends.
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A defocused dance floor with a couple doing their first dance. (iStock/iStock)
The data revealed that 15% of respondents had to put off buying a home, while 10% had to put off their studies. Nine percent have put off retirement, 7% have put off career advancements, and 7% have even put off getting married. Additionally, an additional 7% put off having children.
Economic stress has caused people to put off even small activities, whether it’s going to amusement parks, the aquarium, the movies, or attending an art or sporting event. professional.
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New cars are on the lot of a dealership. (iStock/iStock)
“Whether it’s inflation, rising interest rates, recession fears, market volatility or something similar, worries about the economy are high,” said Greg McBride, Chief Financial Analyst at Bankrate.
In October, consumer prices rose 7.7% from a year earlier and 0.4% from September, according to government data. Although the year-on-year increase, down from 8.2% in September, was the smallest since January, prices remain high as the Federal Reserve continues to fight inflation .
Mortgage rates also topped 7% for the second time in recent weeks – a high not seen in more than two decades. Mortgage buyer Freddie Mac reported last week that the 30-year average key rate had risen to 7.08%. A year ago, the average rate was 2.98%.
MORTGAGE REFINANCING IS STAINED
As a result, new home sales fell in September as high house prices and lending rates spooked potential buyers.
Fifty-seven percent of respondents say the state of the economy has had a negative impact on their quality of life over the past year. According to the survey, only around one in eight people said the impact had been positive.
According to Bankrate, those who said their life was negatively affected are more likely to have delayed a financial milestone than those who said their life was positively affected or not affected at all.
Of all the generations, millennials, who are between the ages of 26 and 41, are the most likely to have delayed at least one milestone.
A family hike in the woods. (iStock/iStock)
The data also showed that 58% of high-income households, earning an annual income of $100,000 or more, were more likely to have delayed at least one financial milestone. This compares to 55% of households earning between $50,000 and $99,999 who delayed at least one financial milestone and 54% of households earning less than $50,000 per year.
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Although travel increased with flights sold out and hotels sold out, McBride wondered if the increase might have been even greater if so many people hadn’t delayed their plans.
“More than one in three Americans (37%) have given up on taking vacations in the past year due to the state of the economy,” he said. “It is usually the first discretionary spending to be cut when households are uneasy about the economic path ahead.”
The Associated Press contributed to this report.
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