Housing's Biggest Challenge: $1 Trillion in Student Loan Debt reports one headwind for the housing market is that student loan debt is hindering young first time homebuyers. Either they don't qualify for a large enough mortgage, nor can they save for a larger down payment. So despite some of the lowest mortgage rates ever, there are actually less first time homebuyer purchases than normal.
While student loans generally are viewed as good, the delay of housing purchases shows student loans create economic tradeoffs and demonstrates that there are no economic free lunches, despite what some might have us believe.
For more on Crossing Generations, check back every Thursday for a new segment.
This is not financial of housing advice. Please consult a professional advisor.
Copyright © 2013 Achievement Catalyst, LLC
Thursday, April 11, 2013
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