Page 49 - July-August 2018 GSE Report Flip Book

FANNIE MAE AND FREDDIE MAC JJUALN. U- ARUYG. 22001188
limited construction still linger. Inventory is still falling on an annual basis, and home values are growing well above their historic pace. Although these trends are starting to lose their edge, it is far too soon to call it a buyers market.”
“While ongoing supply constraints are reinforcing the floor on home prices right now, the experts’ forecasts still imply the joists will start to crack sometime next year, and result in sub-three percent annual home-value appreciation in 2020 and beyond,” said Pulsenomics Founder Terry Loebs. “For the first time, a majority of the experts said that there is downside risk to their long-term outlook for home values nationally—and they outnumber experts who assigned upside risk to their forecasts by more than a three-to-one ratio.” (HousingWire, Kelsey Ramirez, 08/28/18; Mortgage Professional America, Steve Randall, 08/28/18; New York Times, Jim Tankersley, 08/27/18; U.S. Home Price Appreciation Maintains Momentum in June, Barclays, 08/28/18; Daily Dose, 08/30/18)
How higher education in the U.S. became a debt sentence and barrier to home ownership
More than 45 million people across the U.S. have student loans and 20% of them owe more than $100,000 and are barring them from homeownership, according to the National Association of Realtors. Over 80% of people aged 22 to 35 who have not purchased a home blame their student debt, according to NAR.
The Northeast is the worst affected with 75% of New Hampshire’s graduates carry an average outstanding debt of $36,367, the worst in the country, versus Utah’s lowest rate of debt, owing an average of $20,000.
Federal Reserve data shows that student loans outstanding increased threefold from $480 billion in 2006 to $1.53 trillion in 2018. the amount of student loans stood at $480 billion in 2006 and by 2018, the debt mountain had risen to $1.53 trillion.
In contrast, prices for undergraduate tuition, fees, room, and board at public institutions rose
34% and prices at private nonprofit institutions rose 26% (after adjustment for inflation) from school years 2005–06 to 2015–16, according to the National Center for Education Statistics. (Tuition Costs of Colleges and Universities, National Center for Education Statistics; Statista, Niall McCarthy, 08/28/18)
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