With nearly a fifth of college graduates holding over $100,000, it could feel as if younger Americans are carrying the weight of a mortgage before they’ve even bought a home. And according to a survey conducted by The National Association of Realtors, that is precisely what is keeping millennials on the sidelines when it comes to homeownership.
Eighty-three percent of non-homeowners aged 22 to 35 with student loan debt cite their educational loans as the reason they have not purchased a home yet. They say their delay in buying a home is largely due to their student loan payment taking a large portion of their income. The average delay is about seven years, according to the report.
Millennials are those born between 1981 and 1996 and are so titled because they are the first generation to come of age in the new millennium.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.0 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.