Dive summary:
- Once upon a time – before the housing bubble broke and the recession ensued – people with student debt were more likely to seek mortgages because their incomes tended to be higher.
- Enter the present, when the ever-growing size of student debts has turned those graduates into less-likely home buyers, the Federal Reserve Bank of New York says in a new study.
- Things slid for everyone, but the Fed study found that 30-year-olds with no student debt were 5% less likely to carry a mortgages than a decade earlier while those with student loans to pay back were down 10%.
From the article:
"By 2012, the homeownership rate for student debtors was almost 2 percentage points lower than that of nonstudent debtors," the NY Fed researchers said.
