MReport October 2020

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 55 of 67

54 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Survey: How the First Stimulus Check Helped Homeowners A majority of adults in American households either did—or planned to—use most of the money for household expenses. A s Congress debates a new stimulus package, and Americans antici- pate the possibility of a second government stimulus check, a new survey showed that stimulus checks last spring went mostly to cover rent and mort- gage payments, as well as other "household expenses." Credello, a personal finance tool, recently released these findings. This past April, all U.S. resi- dents who were eligible received a stimulus check (officially known as an Economic Impact Payment) thanks to Uncle Sam (officially known as the federal government). These funds (each check was worth up to $1,200 for individu- als or $2,400 per married couple, plus an additional $500 for each child under 17) are meant to help Americans navigating the dev- astating economic impact of the current COVID-19 pandemic. It is anticipated that yet one more round (at least) of payments could go out (most likely even before the November elections). However, it is reported that nego- tiations have stalled in Congress. It is believed that all those who received a stimulus check the first round would also receive one this next round as well. The question is posed: What will you do with your funds received? Before answering this question, the U.S. Census Bureau surveyed recipients, asking them what they spent their first round of federal funds on. According to the survey, the majority of adults in American households either did—or planned to—use most of the money toward some kind of household expense. Broken down below are just some of the most popular re- sponses for how stimulus checks were spent: • 80% used the money for food • 78% spent the money on rent/ mortgage and/or utilities • 58% used the money for household supplies and personal care products • 20% spent the money on clothing • 10% planned to spend the money on household or recreational goods • 33% planned to use the money to pay off debt or add to savings As they anticipate a possible second round of stimulus checks, experts advise all Americans who are able to do so (read: those who have their survival necessities met) should continue to focus on paying down their debts. States with Least-Satisfied Homeowners In Texas, 39% reported they were bored of their hometown following lockdowns and were actively seeking to relocate elsewhere. Here is a closer look at sentiment in all 50 states. A ccording to a recent survey conducted by researchers at Unclut- (a home and office organization website), many Americans are looking to relocate post-pandemic. The most popular reasons given for this wished-for migration in- clude the fact that many Ameri- cans report being either bored with their current locations (following weeks upon weeks of lockdown) or simply wanting to move away from their densely populated cities and towns to put down new roots in wide open spaces. The survey highlighted specific percentages of American residents that were feeling this way (broken down according to which state they reside in). Results revealed that Texas residents are among the top contenders in the prover- bial "unhappy at home" category, with 39% reporting that they were bored of their hometown follow- ing lockdowns and were actively seeking to relocate elsewhere. In fact, almost 50% of Texans who live in cities and urban areas re- ported a desire to not only move, but to move out of the current metros and into the quieter, more spacious suburbs. This latter sentiment should definitely come as no surprise, as it has become painfully appar- ent that since the onslaught of the current COVID-19 pandemic, and its accompanying manda- tory stay-at-home orders and lockdowns, many Americans are realizing just what a priceless commodity ample space truly is. In fact, many report a desire to now have things that they never thought much of before, such as access to a garden or the freedom of enjoyment of a big yard space. Not to mention simply having more space between neighbors in this increasingly social distancing- centric climate. Also drawing more people away from the city life to plant roots in the country, the simple fact that the further out from the city one goes, the further your money generally stretches in regards to house size, outdoor space, etc. Further supporting the validity of this survey finding is the fact that experts across the real estate industry have all reported a noticeable spike in the amount of online home searches in suburban ZIP codes this year. Alexander Brown from commented on the survey's findings: "The pandemic has made a lot of us look at things differently. Moving home is a big undertaking, but worth it for the benefits you get if you choose more space and a more relaxed pace of life. Packing up a household can be hard, but it's a good opportunity to get rid of all the things you don't need any more and organize your new space." People in states including Connecticut, Main, Delaware, and Oklahoma are less satisfied, in general, than Texans, even. All of the aforementioned showed that at least half if the states' residents wanted to relocate.

Articles in this issue

Links on this page

Archives of this issue

view archives of TheMReport - MReport October 2020