Unsecured debt holding back potential homeowners

Unsecured debt holding back potential homeowners

Unsecured debt holding back potential homeowners
With so many college students graduating with tens-of-thousands of dollars of loans, taking on a mortgage may seem to many of them like a dauting prospect. According to a new report from the National Association of Realtors, 47 percent of potential homebuyers say student loan debt is the biggest obstacle in their way when trying to save money for a down payment on a home.

In addition to student loans, credit card debt was also a major contributing factor keeping potential home buyers on the sidelines. Forty-three percent cited credit card payments as a reason why they can’t save.

First-time homebuyers dropped in 2020 from 33 percent of all home buyers to 31 percent, the lowest share since 1987.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 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.