Bankrate

When I talk about #creditcards and issuers, I like to use the term "relationship". Sometimes a relationship serves you, and it's a perfect balance of give and take. Other times, it's best to move on. Earlier this year, I moved on from my Amex Gold. I loved that card until things changed, and I realized I was getting less than I was giving. Here's more on that—and the card I got to replace the Amex Gold.

NEWS: Fed officials have been saying they need more confidence that inflation is on the right track back toward 2% before they cut rates. They clearly don’t have enough evidence just yet. The Federal Reserve left interest rates at a 23-year high for the seventh consecutive meeting in June. And in updates to their Summary of Economic Projections (SEP), officials were split between one or two rate cuts for 2024 — even if one became the new median. It might have more to do with math than anything else. Officials now only have four rate-setting meetings left this year to adjust interest rates. Modest rate cuts, at every other meeting or more, are in the very nature of the soft-landing policymakers are aspiring to achieve. They don’t want to be in a situation to rush. Three cuts across four gatherings risked giving off the impression that Fed policymakers think the U.S. economy needs rescuing.  Officials are also running out of time to get the confidence they need this year. They likely want inflation — the problem child of U.S. economic data — to get a good report card for May, June and maybe even July. Translation: That CPI report released today, which showed that prices were flat for the first time since 2022, isn’t enough good news. But even though proponents of maintaining high interest rates can find plenty of data to back up their position, those advocating for rate cuts can spot vulnerable areas in the financial system, too. Unemployment is back at 4 percent for the first time since January 2022. And it’s really just rent prices keeping inflation hot: Excluding food, energy and shelter, prices were up just 1.9% from a year ago. Is the Fed right to wait, or is it behind the curve? Let me know in the comments, and read my recap of today’s decision: https://lnkd.in/edMtmE-w    

A new Bankrate survey found the hidden costs of homeownership for a typical single family home total over $18,000 per year, a 26% increase since 2020. The states with the highest average hidden costs are located in the West or Northeast, with the stop three states while the states with the lowest hidden costs are all in the Southeast or Midwest. The three states with the biggest percentage increases from 2020 to 2024 are Utah (44%), Idaho (39%), and Hawaii (38%), while Alaska (14%), Texas (14%), and Louisiana (15%) had the smallest percentage increases. “No matter where you live, make sure you include some cushion in your monthly budget to absorb the shock of unplanned expenses,” says Bankrate’s Jeff Ostrowski “After you achieve homeownership, you need to fatten up your emergency savings account for all those surprise repairs.” For more information, please visit: https://lnkd.in/eaMVjhjQ #homeaffordability #homeownership

Has tipping culture reached its tipping point? A new survey from Bankrate points to yes as 35% of Americans say tipping culture has gotten out of control with that feeling seeming to increase with age. This survey found 23% of Gen Zers and 27% of millennials think tipping culture has gotten out of control, compared to 40% of Gen Xers and 46% of baby boomers. Bankrate’s Ted Rossman says that the state of tipping may be attributed to companies being hesitant to raise prices and “asking for tips can essentially be a way for them to raise prices without acting like they're raising prices”. How do your tipping habits compare to the American average? For more information, please visit: https://lnkd.in/eeZhFiub

Most people still regard homeownership as part of the American dream. However, surprising or unexpected costs can be a challenge for homeowners. At a time when many are focused on housing affordability challenges for prospective homeowners, we shouldn't lose sight of the potential financial issues facing current owners. A new Bankrate survey finds that about 1 in 5 homeowners say they've taken on debt of some kind to cover home maintenance and other costs. This can be a difficult trap given the current high level of interest rates. If there's good news from the survey, 24% of homeowners tell us they've saved specifically for maintenance and other costs. Others can learn from their example. Prioritizing savings is the key to avoiding a domino effect of further borrowing costs. Here's more on what we found:

With the high price of rent, groceries and other necessary expenses today, you may be unsurprised to hear many Americans have gotten financial support from their parents, even beyond the age of 23. 👨👩👦 👩👧 👨👨👧👦 Don't get me wrong, there's nothing wrong with that! What's more troubling is that 61% of parents of adult children have sacrificed financially to help their adult children. New from me: A new Bankrate study out today shows that the majority of parents of children over 18 are currently sacrificing (or have sacrificed at some point) to provide assistance to their adult children. ‼ So what exactly are they helping with? We asked people about the kind of help they received from their parents when they were 23 or older: 🥐 48% of people received help with everyday expenses, like groceries or utilities. 🏘 37% of people had help with rent payments, or they were permitted to live with their parents with reduced or free rent. 💳 21% of people received help with paying down/paying off debt. Personally, I'm a strong believer in destigmatizing family and community support. But it's worrying that older adults told us they're sacrificing their retirement savings or emergency savings to financially support their adult children. What's more, Bankrate's Chief Financial Analyst Greg McBride, CFA says, thanks to persistent inflation and housing affordability woes, this trend will likely continue. I'll be writing more about this topic soon, about the millennials who are living with their parents past the age of 30. Stay tuned for that! In the meantime, I want to hear from y'all! Do you still receive financial support from your parents? If not, when did that support stop? #economy #inflation #parenting #housing #budgeting

Have unexpected home costs left you grappling with debt? If the answer is yes, you’re not alone. A new Bankrate survey found that about 1 in 5 homeowners have taken on debt to cover home maintenance and other hidden costs, with younger generations the most likely to take on a form of debt to pay off these costs: - 31% of Gen Z  - 26% of Millennials - 19% of Gen X - 13% of Baby Boomers The types of debt homeowners have taken on include credit card debt (11%), taking out a personal loan (6%), or getting a second mortgage (5%). Bankrate’s Mark Hamrick says the unexpected costs that come with homeownership prove just how important it is to prioritize savings. “Emergency savings accounts and rainy-day funds provide self-insurance against the inevitable expenses that are simply just part of life, including for homeowners”, says Hamrick. For more information, please visit: https://lnkd.in/eiVJcTck #debt #homerepairs

Step aside, boomers. Millennials are taking over the housing market, and they're going about it a little differently. While purchasing a home with a domestic partner or spouse has been the most common way to buy a home across all generations, a higher percentage of millennials have bought homes in other ways, such as by themselves, with a friend or with a relative other than a domestic partner or spouse, according to Bankrate’s new Homebuying Trends Survey. This is a significant contrast to older generations who’ve primarily purchased their homes with their spouses and domestic partners. Seventy percent of baby boomers have bought a home with a domestic partner or spouse, followed by 56% of Gen Xers and 47% of millennials. 42% of millennials—now the largest group of homebuyers—have bought a home alone, compared to 34% of Gen Xers and 22% of baby boomers. Housing experts attribute this to evolving attitudes toward marriage. Younger Americans are increasingly delaying or forgoing marriage altogether, but their attitudes toward homeownership haven’t changed as much. Owning a home is still a key part of the American dream for over 70% of millennials (per Bankrate's Home Affordability Report), and most millennials are more willing to be flexible in their approach to what’s become a challenging housing market. Selena Trevino, a 27-year-old first-time homebuyer based in the Portland metro area, told me she chose to buy a house alone at the end of last year because she "didn't want to wait for marriage." She said the "opportunity arose" because she had two streams of income, one from her 9-5 and one from her side hustle as a content creator, but continued to live below her means. "I wanted to have a place that I could grow in and something that could be an asset in the long term," Trevino said. Millennials are also most likely to have purchased a home with a friend (10%) or a relative other than their domestic partner or spouse (7%). A decade ago, this might have seemed like a far-fetched idea. Yet, high mortgage rates, rising home prices and tight inventory have made finding affordable homes tough, leading some millennials to turn to their friends and family members to split the costs and sooner achieve their dreams of owning a home. Current homeowners, how did you purchase your homes? Aspiring homeowners, would you consider buying a home alone or with someone other than a romantic partner in this housing market? Let me know in the comments, and read more below: #housingmarket #realestate #homebuyingtrends #millennial #babyboomers #genx #litrendingtopics

Are you experiencing buyers remorse when it comes to your home? 🏡 If the answer is yes, you’re not alone. According to a new Bankrate survey, nearly half of current homeowners have at least one regret about purchasing their current home. The most common homeowner regrets include: - Maintenance and other hidden costs being more expensive than expected (40%) - Buying a house that is too small (18%) - Buying a house that is too big (10%) - Buying a house in a bad location (15%) - Paying too much for their home (14%) - Not getting the best mortgage rate (10%) But, even with this list of regrets, over two-thirds of homeowners (69%) still said they would make the same purchase if they had to do it over again. Would you? For more information please visit: https://lnkd.in/dz9WnyKu #homebuying

Solo homebuying surges among millennials, outpacing older generations. 🏡 Millennials are taking a different approach to homeownership compared to older generations, according to a new Bankrate survey. The survey revealed significantly more Millennials (42%) have purchased a home alone than the older generations compared to 34% of Gen Xers and 22% of Baby Boomers. On the other hand, Baby Boomers are more likely to buy a home with a spouse or domestic partner with 47% of Millennials, 56% of Gen Xers, and 70% of Baby Boomers opting for this path to home ownership. This shift in homebuying may be attributed to a change in societal norms with younger Americans partnering or marrying later than older generations, says Bankrate’s Alex Gailey. For more information, visit: https://lnkd.in/ewN3mp4V