Rising Student Debt Could Impact Millennials’ Future Homeownership

In today Daily Download Episode, HousingWire covers a report of The Mortgage Bankers Association Research Institute for Housing in America This indicates that in the second quarter of 2020, nearly 11 million households fell behind on their rent or mortgage.

Additionally, the report found that the COVID-19 pandemic could have negative impacts on homeownership among Millennials.

To learn more about the story, here is a summary of item:

In the second quarter of 2020, nearly 11 million households fell behind on their rent or mortgage – but nearly triple that number, around 30 million people, missed at least one student loan payment, according to a recent report. of the American Housing Mortgage Bankers Association Research Institute.

The data compiled from the Understanding America study is the result of a panel survey designed to study the impact of the pandemic in particular on mortgages, tenants, and student loan borrowers.

According to the survey, evidence suggests that student debt affects the behavior of the housing market, particularly how the increased student debt burden may have crowded out first-time home buying among Millennials.

Each additional $ 1,000 of student debt lower Homeownership rate of about 2% – a huge effect, according to the report. This reinforces the findings of other studies, including a 2017 study by the National Association of Real Estate Agents where over 75% of respondents with student loans said their student loan debt had an impact on their decision to buy a home.

After the main story, HousingWire also discusses the nation’s # 1 loan issuer Shant Banosian to become Guaranteed ratesfirst loan officer to finance $ 1 billion in loan volume in one year and Keller williams‘recent vote add a diversity, equity and inclusion committee to its board of directors.

The Daily Download examines the most compelling articles reported by the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper insight into the stories shared in our newsroom that help Advance markets. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.

HousingWire articles covered in this episode:

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