Though, some experts remain hopeful in the mortgage market picking up once again, others on the bearish side of things believe that it might take some time before the home loan space enjoys some significant improvement. A recent survey from Bankrate.com revealed that about 26 percent of American consumers do not have “emergency” savings, which is, in essence, indicative that these consumers do not have any kind of savings at all.
Among those who have savings, 67 percent said that they have sufficient money in their kitty to cover six months’ expenses, while 40 percent said that their savings kitty is only good for three months’ worth of expenses. Most of the individuals polled by Bankrate said that the rising cost of living, including the bare necessities (food, shelter, clothing, and gasoline) is the main headwind preventing them from saving a substantial amount of money.
A second variable cited was a lack of wage growth, while other consumers said that student loans had been a hindrance in preventing them from saving. In short, it would appear that 26 percent of Americans may never qualify for a mortgage because their monthly pay is barely enough to help them get by.
Commenting on the above findings, Bankrate.com chief financial analyst Gregory McBride said that Americans are still “(showing) a stunning lack of progress in accumulating sufficient emergency savings.” He added that even those from high-income households with an annual income of $75,000 or more are having their share of challenges, with only 46 percent of them having saved up enough for six months.
Further, McBride said that many respondents under 30 have a bit of an advantage, due to their living with roommates or parents, or still being in school. Those in the 30-49 age range, who are the most likely not to have emergency funds, tend to struggle in this regard, as McBride says those are “high-spending years when expenses often rise faster than emergency savings can keep up.”