Overall financial well-being hit record highs at the end of 2021 according to the Federal Reserve’s Economic Well-Being of U.S. Households in 2021…(Federal Reserve)
- 78% of adults were either doing okay or living comfortably financially, the highest share with this level of financial well-being since the survey began in 2013.
- 68% of adults said they would cover a $400 emergency expense exclusively using cash or its equivalent, up from 50% who would pay this way when the survey began in 2013.
Parents, in particular, had probably the best year thanks to a new economic stimulus from the federal government in the form of the Child Tax Care Credit…
- 75% of parents said they were doing at least okay financially, up 8 percentage points from 2020.
- However, most of the CTC went to other expenses with only slightly over 2 in 10 spending the most significant portion on their child.
Low rates continued the refinance momentum that started in the second part of 2020…
- Nearly one-fourth of all homeowners with a mortgage refinanced their mortgage in 2021.
- Income played a part in this decision as nearly 3 in 10 mortgage holders with income of at least $100,000 per year refinanced, compared with 23% of those with income between $50,000 and $99,999 and 16% of those with income under $50,000.
This is obviously a great report. However, a lot has changed since the start of 2021. The stock market is close to bear market territory. Inflation is holding steady above 8% and mortgage rates are 200 basis points higher. A lot can change in five months…