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A resumption of student loan payments is about to hit the housing market.
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In a recent survey, 58 percent of economists said the resumption of payments would have a significant impact on mortgages.
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In another survey, 27% of borrowers said they were worried about being able to make rent or mortgage payments.
The affordability crisis is hitting the US housing market A recent survey of more than 100 homebuyers found that student loan payments could get worse when they start up again this fall.
58% of surveyors believe that student loan repayment will have a significant impact on the affordability of loans, according to a recent analysis. pulsenomics. 35% of experts believed that the resumption of payments could significantly affect the rate of American homeownership, and 26% of Mortgage delinquency rate; The research firm added.
Student loan payments are returned when they are repaid Housing capacity is already overcrowded. The U.S. homeownership rate fell to 65.9 percent in the second quarter. According to the Federation’s data, Delinquencies at the 30 largest mortgage servicers rose to 3.16 percent; Home loan financing.
The effects of the resumption of student loan payments could be felt for years to come. 38% of experts said that the impact on mortgage supply could last for two years, while 43% of respondents believed that it could last for three or more years.
Student loan payments are set to resume on Oct. 1, ending a three-year payment freeze that began during the pandemic. Economists have warned that this may cause significant pressure on the economy and especially on housing. According to data from the US Department of Education, 70% of student loan borrowers are between the ages of 25-49, meaning they are in their prime home buying age.
The average borrower has an outstanding balance of $38,000. That makes the average student loan payment nearly $502 per month Educational Information Initiativeor about 20% Estimated average US monthly mortgage payment From $2,605.
as if A separate study conducted by Morgan StanleyOnly 29 percent of borrowers said they were confident they would be able to make student loan payments, and 34 percent said they could not make any payments at all.
Additionally, 31% of respondents said they were worried about making debt payments and 27% were worried about paying rent or mortgage payments, both measures at all-time highs.
Equivalent conditions in US housing They are the worst buyers the market has seen in decades. That is mostly due to high mortgage rates and a Lack of available housing supplyThis has led to higher home prices in the past year, despite the decline in demand.
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