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The “mortgage lock-in effect” continues to weigh on the housing market, as a new Bankrate survey finds that the majority of U.S. homeowners (54%) say there is no mortgage rate at which they would be comfortable selling their home this year. Similarly, the survey found about half (51%) of homeowners would be uncomfortable with purchasing another home no matter what happens with mortgage rates this year. Just 3% of all homeowners say they would be comfortable selling a home this year at a mortgage rate of 6% or higher. For the full survey insights, visit: https://lnkd.in/eRnqPpft

Fewer Americans have a side hustle in 2025. Bankrate's new survey found that only 27% of U.S. adults have a side hustle, marking a significant decline from 36% in 2024 and 39% in 2023. This is the lowest percentage since 2017. Younger generations are the most likely to have extra sources of income: 34% of Gen Zers (ages 18-28) and 31% of millennials (ages 29-44) have side hustles, compared to just 23% of Gen Xers (ages 45-60) and 22% of baby boomers (ages 61-79). Additionally, parents with children under 18 are more likely to engage in side hustles (34%) than non-parents (28%). Current trends indicate that a strong job market and cooling inflation have contributed to the decline in side hustling. However, as the job market potentially weakens and inflation may rise again (due mostly to tariffs), we could see a resurgence in side hustles in the coming year. Here are some other key insights from the survey: - 35% of side hustlers use their earnings for regular living expenses, while 41% allocate funds for discretionary spending. - The average side hustler earns $885 per month, but the median monthly side hustle income is just $200. - Popular side hustle industries include online sales (15%) and professional services (14%), but these additional income sources are highly varied. Incorporating a side hustle into your life can be a smart strategy that helps you manage expenses, boost savings and pay down debt. It can also be a fun way to pursue a passion project and build new skills and contacts. For more details and insights, check out the full survey: https://lnkd.in/eKCvnQNZ

The June jobs report came in better than expected with 147k jobs added and the unemployment rate fell to 4.1%. Both moves defied economists' expectations. Private sector hiring was anemic, while state and local governments picked up the slack. What does this say about a future interest rate move, something we're watching closely Bankrate? Here's my take:

Meet Bankrate’s Chief Financial Analyst, Greg McBride, CFA! 🌟 Greg is a Chartered Financial Analyst with more than 25 years of experience in personal finance. He has appeared on hundreds of national cable and network broadcasts, and is often quoted in major media outlets such as New York Times and Wall Street Journal. Follow Greg on X for more insights on personal finance and exclusive Bankrate data analysis: https://x.com/BankrateGreg

Bankrate’s new Emergency Savings Survey found that fewer than half of Americans have enough emergency savings to cover 3 months’ expenses. Further, 60% say they are uncomfortable with their level of emergency savings. Bankrate Chief Financial Analyst Greg McBride, CFA, breaks down the latest report. https://lnkd.in/gr4Wi9HU

How much do you need to live comfortably? Do you think you’re already making a comfortable income? According to a new Bankrate survey, many people would probably say, “No.” https://lnkd.in/eQKf5i2R Almost half of Americans (45%) believe they need to make a six-figure annual income ($100,000 or more) to feel financially secure, according to Bankrate’s Financial Freedom Survey. Even more striking, over a quarter (26%) say they need to make $150,000 or more. And what's more, 56% of people feel like they need to make more than they already are to live comfortably. Is it superfluous, or is there some truth to it? It’s true that incomes don't go as far as they used to. Earning $150K a year puts you in the top 10% of earners in the U.S., but in many high-cost cities and states, it’s considered a "middle" income salary. Enter the phenomenon of "HENRYs" (High Earners, Not Rich Yet), a growing share of people who make a salary we might typically consider “wealthy” and still feel like they are living paycheck to paycheck. But our definitions of wealth and comfort are relative, and there's a bit of lifestyle inflation going on. While only 16% of people making under $50,000 felt they needed at least $150K to live comfortably, that percentage rises to 21% for those making between $50,000 and $79,999, 28% for those earning $80,000 to $99,999 and a staggering 54% for those making $100,000 or more. This isn’t necessarily about Americans doing anything wrong. They might be living in high-cost cities where rent is pricey. Many people might’ve invested in their education, but student loan payments are pinching their budget. Plus, after periods of restraint, the lure of a grander lifestyle can be hard to resist. But this raises an important question: If even upper-income Americans are struggling to grow wealth for themselves, what does that mean for lower- and middle-income Americans' ability to grow their money? I’d love to hear your thoughts! What salary would you need a year to live comfortably? Is $150K excessive — or does it make sense to you?

In announcing no change in its benchmark interest rate, the Federal Reserve's policy-making Federal Open Market Committee noted that "uncertainty about the economic outlook has diminished but remains elevated." This marks the fourth consecutive meeting where rates remained on hold. It said "recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated." There's no shortage of wildcards in play. Among them is the impact of tariffs, or taxes on imports, which risks inflaming inflation and dampening economic growth. An added dimension is the war between Israel and Iran. If oil and gasoline prices were to rise in a sustained fashion, that would pose additional risks. The committee members indicated through their Summary of Economic Projections that the benchmark rate could decline by 1/2 of 1%, or 50 basis points, by the end of the year. The wait-and-see approach remains intact. My colleague Greg McBride, CFA, notes the different impacts on borrowers and savers: “Judging by the Fed’s projections, don’t expect interest rates to come down very quickly. This is music to the ears of savers, like retirees, who are earning a good income on their hard-earned savings. But it underscores the urgency for borrowers to aggressively pay down high-cost credit card debt and offers little hope of a significant drop in interest rates any time soon.” Here's more from Bankrate on the potential impacts of Federal Reserve decisions on the economy and personal finances: https://lnkd.in/eXzkr5f7

The “vibecession” remains in effect. Despite gloomy consumer sentiment, spending on discretionary items is surprisingly robust. This disconnect between how people feel about the economy and how they're actually behaving is creating some interesting trends. Let's look at the numbers: Bar and restaurant sales are up nearly 8% year-over-year, air travel is on pace to surpass last year's record numbers, and Live Nation just reported record concert ticket sales for Q1 2025. Americans are splurging on experiences, even as they express concerns about the economy. So what's driving this paradox? There are a few factors at play: First, we're still feeling the effects of recent inflation. While price increases have slowed, the cumulative impact of all of the price hikes dating back to 2021 continues to weigh on consumers' minds. Second, economic inequality is masking some of the struggles – the top 10% of earners drive half of U.S. consumer spending, skewing the overall picture. The job market has been solid and wage growth has outpaced inflation for the past few years, but many are still playing catch-up and don’t feel like they’re getting ahead. Perhaps most intriguing is the shift in attitudes, especially among younger generations. There's a growing "YOLO" mentality, with many Gen Zers and millennials prioritizing experiences over traditional financial milestones. They're willing to take on debt for travel, dining, and entertainment, even as they express pessimism about long-term financial prospects such as paying off student debt, buying homes, getting married, having kids and so on. This changing dynamic suggests a fundamental shift in consumer behavior that could have lasting implications for our economy. Generational attitudes are changing, and the old rules may no longer apply. In other words, sentiment doesn't always align with actions – in fact, the gap is growing. Consumer sentiment used to be viewed as a more reliable leading indicator. The conventional wisdom is that when people feel downbeat about the economy, they will adjust their behavior and spending will slow. That hasn’t happened the past several years. Consumer sentiment has been depressed for the past five years, yet hard economic data (consumer spending, jobs, GDP growth, etc.) has been much more favorable. What's your take on this "vibecession"? Are you seeing this disconnect in your own spending habits or those of people around you? For a deeper dive into this trend and its potential impact on personal finance, check out my article on Bankrate: https://lnkd.in/eAsiJhdH

The Federal Reserve will meet again this week and is expected to hold interest rates unchanged. While inflation metrics are positive, uncertainties around tariffs loom. Bankrate Chief Financial Analyst Greg McBride, CFA breaks down what this week’s Fed meeting means for consumers and their personal finances. https://lnkd.in/eEkg3Cv

A new Bankrate survey finds that a majority of Americans believe the nation's economy is going in the wrong direction. When we drill down on some top policy priorities of the Trump administration, some 65% of Americans tell us that tariffs, or taxes on imports, will have a negative impact on their personal finances. Here's more on what we found: