Talking about student loans hurting home sales, consumer confidence, mortgage delinquencies, the foreclosure settlement!
Today’s topics include a depressing tidbit about student loans hurting home sales, encouraging news about consumer confidence, mortgage delinquencies, where the money from the foreclosure settlement is going and more!
I have said many times that one of the things holding back recovery in real estate is the high unemployment level. Add the additional burden of student loans and it is easy to see that many younger Americans might want to buy a home but simply cannot:
These burdens are especially great for the most recent grads, who are very unlikely to be able to buy houses for the foreseeable future.
And while this sounds very disturbing, we might be encouraged to read Millennials Want to Be Home Owners
Even more encouraged to hear that 84% of ages 18-34 say they intend to buy a home
After that depressing tidbit how about some good news? The Gallup Economic Confidence Index reached its highest point since 2008! The Gallup Economic Confidence Index is based on 2 things:
- Americans’ ratings of current economic conditions
- American’s perceptions of whether the economy is getting better or getting worse.
This is great news because the more confident people get, the more likely they are to start taking advantage of the low mortgage rates and incredible home prices available today!
Mortgage Delinquencies Up…and Down
LPS is reporting that the number of delinquent mortgages increased slightly in April 2012 from the previous month. There is a silver lining to this story though. LPS also said that the number of delinquent mortgages declined year-over-year. They also said that the number of mortgages in the foreclosure process was unchanged.
Last but Not Least
Home prices will not reach a true bottom until late 2013 according to Fitch Ratings