Wednesday, April 10, 2013

Student Loan Debt Hurts Housing Market

With home prices and mortgage rates both at historic lows, it seems like the perfect time to buy. First-time home buyers usually make up over 40 percent of the home buying population, but their share has hovered at or below 30 percent recently.

WHY? Student loans are standing in the way of many first time home buyers.
As total student loan balances nearly tripled between 2004 and 2012, according to a new survey from the Federal Reserve Bank of New York. Now $1 trillion in collective student loan debt is directly affecting the housing recovery.

I guess the $100,000+ in student loans for a job that pays $30,000 a year does not make sense after all.  To read more...

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