NASHVILLE, Tenn. (WTVF) – With President Biden’s student loan relief package in limbo in court, people are considering what they will do if at least some of their loans are forgiven, and for many millennials is to buy a house.
Financial and housing experts have said loan forgiveness will make the housing market fairer despite those higher interest rates we’ve talked about so much.
According to a study by Rocket Mortgage, nearly 40% of millennials who took out student loans never had the opportunity to own a home.
This study considers millennials as people between the ages of 26 and 41.
About 70% of millennial borrowers surveyed who intended to buy their first home within ten years said they thought they could buy one within three years with student loan forgiveness.
According to the US Census Bureau, about 57% of millennial borrowers own a home, and the majority of those people are still making payments on student loans.
Rocket Mortgage said the loan forgiveness will also make the housing market more competitive, especially for mid-priced homes between $200,000 and $400,000.