A new report finds young families face challenges buying a home and starting a family. They’re waiting on a 4.5% mortgage rate.
NASHVILLE, Tenn. — A new survey by Ramsey Solutions reveals that financial challenges are causing Americans to delay major life decisions, such as purchasing a home or starting a family.
According to The State of Personal Finance report for the fourth quarter of 2024, high mortgage rates are keeping millennials and Gen Z on the sidelines. When asked what mortgage rate would be the “magic number” for them to buy a home, respondents said 4.5%. But according to Freddie Mac, current rates stand at 6.12% for a 15-year fixed mortgage and north of 6.95% for a 30-year fixed mortgage.
This challenge extends beyond homeownership. The rising costs of raising children have prompted many Americans to delay starting families. Experts point to these increased expenses as a key factor in the U.S. birthrate, which has fallen to its lowest level in over 40 years, according to the CDC. Many are choosing to wait until they’re in a stronger financial position.
While many Americans face significant obstacles, financial expert and Ramsey Solutions CEO Dave Ramsey provides practical advice for overcoming these challenges and achieving long-term success.
“You can’t control the high cost of anything — whether it’s a house or an egg at the grocery store — but you can control your finances,” said Ramsey. “The first step to reaching any goal is to have one. You work too hard to be broke. Get on a budget, get out of debt, live on less than you make, and build savings. If you stick to the plan, you’ll see the results. Those dreams won’t just stay dreams — they’ll become your reality because you took action.”
Key Findings From the Survey Include:
- 37% of respondents believe their personal finances will improve under the new administration, while 35% expect them to remain the same and 28% anticipate their finances will worsen.
- 45% of Gen Z and millennial respondents say increasing the child tax credit from $2,000 to $5,000 per child would have a significant or moderate impact on their decision to have children.
- Grocery shopping is the top category where Americans say they’re most likely to overspend.
- 27% of U.S. adults plan to use their tax refund to treat themselves, whether it’s for travel, clothing, dining out or other discretionary spending.
