Approximately 59% of homeowners report wishing they understood the details of their mortgage better, but a recent survey reveals that some young adults may not even want mortgages at all.
According to the National Association of Realtors Housing Opportunities and Market Experience survey, roughly half of college graduates with student debt are uncomfortable with the idea of taking on a mortgage.
Through the first half of the year, NAR’s survey found that about 80% of homeowners and and 62% of renters still say it’s a good time to buy a house.
However, two-thirds of non-homeowners and just about half of individuals under the age of 35 with student debt reported being uncomfortable taking on a mortgage.
“It’s becoming very evident from this survey and our research released last month that the financial and emotional impact of repaying student debt is contributing to a delay in purchasing a home for many would-be buyers,” said Lawrence Yun, NAR chief economist.
Despite the lack of interest in mortgages and home ownership, these four-year graduates are actually making up most of the nation’s workforce.
The report, “America’s Divided Recovery: College Haves and Have-Nots” reveals that 8.4 million jobs have gone to graduates with a bachelor’s degree in the last year.
While this is a great trend for college graduates, the economy seems to be leaving those without a college education behind.
Jobs have been created in recent years, but they’re not the same jobs that were lost. The Great Recession destroyed countless blue-collar jobs, and there has been no trend or movement made in attempt to restore those positions.
“While it’s reassuring to see the economy back on track, we can’t ignore this tale of two countries with vastly different economic realities for those with and without a college education,” said Tamara Jayasundera, senior economist at the Georgetown Center and co-author of the report.
Regardless, the fact that these student debt-holders make up the majority of the U.S. workforce has not encouraged them to buy homes.
“At a time of quickly rising rents, mortgage rates at all-time lows and increasing housing wealth, a lot of young adults in their prime buying years are struggling to enter the market and are ultimately missing out on the stability and wealth accumulation that owning a home can provide,” Yun concluded.