Student Debt May Hurt Housing Recovery by Hampering First-Time
Buyers
The housing recovery could lose steam amid escalating student loan debt carried by millions of Americans. With so many people owing so much for their college education, a generation of potential buyers is being discouraged and even blocked from making their first home purchase. Recent improvements in the housing market have been fueled primarily by investors, but that demand now appears to be ebbing as both prices and borrowing costs rise. A recent Mortgage Bankers Association analysis determined that loan applications for home purchases decreased almost 20 percent in the last four months versus the same period a year earlier. First-time buyers are simply not stepping up to fill the void, having accounted for only about 33 percent of activity over the last year -- well under the historical norm. The concern is that many young adults can no longer save for a down payment or qualify for financing.
From "Student Debt May Hurt Housing Recovery by Hampering First-Time Buyers"
Washington Post (02/18/14) P. A1 ElBoghdady, Dina
The housing recovery could lose steam amid escalating student loan debt carried by millions of Americans. With so many people owing so much for their college education, a generation of potential buyers is being discouraged and even blocked from making their first home purchase. Recent improvements in the housing market have been fueled primarily by investors, but that demand now appears to be ebbing as both prices and borrowing costs rise. A recent Mortgage Bankers Association analysis determined that loan applications for home purchases decreased almost 20 percent in the last four months versus the same period a year earlier. First-time buyers are simply not stepping up to fill the void, having accounted for only about 33 percent of activity over the last year -- well under the historical norm. The concern is that many young adults can no longer save for a down payment or qualify for financing.
From "Student Debt May Hurt Housing Recovery by Hampering First-Time Buyers"
Washington Post (02/18/14) P. A1 ElBoghdady, Dina
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