{"id":4207,"date":"2023-08-31T20:48:02","date_gmt":"2023-08-31T20:48:02","guid":{"rendered":"https:\/\/prosfunds.com\/finance\/loans\/us-housing-market-faces-new-hurdle-student-loan-repayments\/"},"modified":"2023-08-31T20:48:03","modified_gmt":"2023-08-31T20:48:03","slug":"us-housing-market-faces-new-hurdle-student-loan-repayments","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=4207","title":{"rendered":"US housing market faces new hurdle: Student loan repayments"},"content":{"rendered":"
<\/p>\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n

The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage.<\/p>\n

It may soon face another obstacle: Student loan repayments.<\/p>\n

Real estate experts are bracing for a significant blow to the market when the pandemic-era freeze on federal student loan payments comes to an end this fall, according to a recent poll conducted by Pulsenomics.<\/p>\n

Most survey respondents said homeownership rates will be affected for at least a year by the resumption of student loan payments \u2013 and many predicted the impact could be longer than that.<\/p>\n

STUDENT LOAN PAYMENTS SET TO RESUME NEXT WEEK: WHAT BORROWERS NEED TO KNOW<\/strong><\/p>\n

\n
<\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n

For more than three years, federal student loan borrowers have not had to make monthly payments.<\/p>\n

But that pandemic-era pause is coming to an end this fall, setting up a potential financial shock for millions of Americans. Although payments will not come due until October, interest will start accruing at the start of September.<\/p>\n

STUDENT LOAN INTEREST PAYMENTS AXED UNDER NEW LEGISLATIVE BILL<\/strong><\/p>\n

More than 75% of the survey respondents said that the payments will have a negative effect on homeownership that lasts for a year or more. About 40% predicted an even longer impact of at least three years.<\/p>\n

About 44 million borrowers in the U.S. were affected by the payment pause, which initially began in March 2020 at the onset of the COVID-19 pandemic. The Biden administration extended the pause for the eighth time<\/u> last November but will not do so again as part of the bipartisan debt ceiling deal approved by Congress.<\/p>\n

\n
\"US<\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n

The payments can be substantial. The average monthly bill hovers between $200 and $299 per person, although it is even higher for some borrowers, according to the most recent Federal Reserve data.<\/p>\n

Collectively, borrowers are to resume paying about $10 billion a month, according to an analysis from JPMorgan.<\/p>\n

COMMERCIAL REAL ESTATE MARKET COULD CRASH SOON. HERE\u2019S WHY<\/u><\/strong><\/p>\n

The potential hit to the housing market comes at an already precarious time amid the astronomic rise in mortgage rates over the past year as well as limited resale availability.<\/p>\n

Even though mortgage rates are nearly double what they were three years ago, home prices have hardly budged. That is largely due to a lack of available homes<\/u> for sale. Sellers who locked in a low mortgage rate before the pandemic began have been reluctant to sell, leaving few options for eager would-be buyers.<\/p>\n

\n
\"US<\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n

The number of available homes on the market at the end of July was down by more than 9% from the same time last year and down a stunning 46% from the typical amount before the COVID-19 pandemic<\/u> began in early 2020, according to a recent report from Realtor.com.<\/p>\n

The housing shortage has only served to boost consumer demand, which is keeping prices uncomfortably high and contributing to the least affordable housing market in decades. In fact, about 38.6% of the median household income is currently required to make the monthly payment on the average home purchase.<\/p>\n

\u00a0<\/u><\/strong><\/p>\n

“To put today\u2019s affordability levels in perspective, it would take some combination of up to a 28% decline in home prices, a more than 4% reduction in 30-year mortgage rates or up to a 60% growth in median household incomes to bring home affordability back to its 25-year average,” Andy Walden, vice president of enterprise research and strategy at Black Knight, said recently.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle: Student loan repayments. Real estate experts are bracing for a significant blow to the market when the pandemic-era freeze on federal student loan payments comes to an end this […]<\/p>\n","protected":false},"author":1,"featured_media":4208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[27],"tags":[],"class_list":{"0":"post-4207","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-loans"},"yoast_head":"\nUS housing market faces new hurdle: Student loan repayments | Prosfunds<\/title>\n<meta name=\"description\" content=\"The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle:\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=4207\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US housing market faces new hurdle: Student loan repayments | Prosfunds\" \/>\n<meta property=\"og:description\" content=\"The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle:\" \/>\n<meta property=\"og:url\" content=\"https:\/\/prosfunds.com\/?p=4207\" \/>\n<meta property=\"og:site_name\" content=\"Prosfunds\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-31T20:48:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-31T20:48:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/Boise.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/prosfunds.com\/?p=4207#article\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/?p=4207\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\"},\"headline\":\"US housing market faces new hurdle: Student loan repayments\",\"datePublished\":\"2023-08-31T20:48:02+00:00\",\"dateModified\":\"2023-08-31T20:48:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/prosfunds.com\/?p=4207\"},\"wordCount\":570,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"articleSection\":[\"Loans\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/prosfunds.com\/?p=4207#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/prosfunds.com\/?p=4207\",\"url\":\"https:\/\/prosfunds.com\/?p=4207\",\"name\":\"US housing market faces new hurdle: Student loan repayments | Prosfunds\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/#website\"},\"datePublished\":\"2023-08-31T20:48:02+00:00\",\"dateModified\":\"2023-08-31T20:48:03+00:00\",\"description\":\"The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle:\",\"breadcrumb\":{\"@id\":\"https:\/\/prosfunds.com\/?p=4207#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/prosfunds.com\/?p=4207\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/prosfunds.com\/?p=4207#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/prosfunds.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"US housing market faces new hurdle: Student loan repayments\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/prosfunds.com\/#website\",\"url\":\"https:\/\/prosfunds.com\/\",\"name\":\"Funding Factories\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/prosfunds.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/prosfunds.com\/#organization\",\"name\":\"Funding Factories\",\"url\":\"https:\/\/prosfunds.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"width\":780,\"height\":140,\"caption\":\"Funding Factories\"},\"image\":{\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/prosfunds.com\"],\"url\":\"https:\/\/prosfunds.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"US housing market faces new hurdle: Student loan repayments | Prosfunds","description":"The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle:","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/prosfunds.com\/?p=4207","og_locale":"en_US","og_type":"article","og_title":"US housing market faces new hurdle: Student loan repayments | Prosfunds","og_description":"The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle:","og_url":"https:\/\/prosfunds.com\/?p=4207","og_site_name":"Prosfunds","article_published_time":"2023-08-31T20:48:02+00:00","article_modified_time":"2023-08-31T20:48:03+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/Boise.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/prosfunds.com\/?p=4207#article","isPartOf":{"@id":"https:\/\/prosfunds.com\/?p=4207"},"author":{"name":"News Room","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6"},"headline":"US housing market faces new hurdle: Student loan repayments","datePublished":"2023-08-31T20:48:02+00:00","dateModified":"2023-08-31T20:48:03+00:00","mainEntityOfPage":{"@id":"https:\/\/prosfunds.com\/?p=4207"},"wordCount":570,"commentCount":0,"publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"articleSection":["Loans"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/prosfunds.com\/?p=4207#respond"]}]},{"@type":"WebPage","@id":"https:\/\/prosfunds.com\/?p=4207","url":"https:\/\/prosfunds.com\/?p=4207","name":"US housing market faces new hurdle: Student loan repayments | Prosfunds","isPartOf":{"@id":"https:\/\/prosfunds.com\/#website"},"datePublished":"2023-08-31T20:48:02+00:00","dateModified":"2023-08-31T20:48:03+00:00","description":"The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage. It may soon face another obstacle:","breadcrumb":{"@id":"https:\/\/prosfunds.com\/?p=4207#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/prosfunds.com\/?p=4207"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/prosfunds.com\/?p=4207#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/prosfunds.com\/"},{"@type":"ListItem","position":2,"name":"US housing market faces new hurdle: Student loan repayments"}]},{"@type":"WebSite","@id":"https:\/\/prosfunds.com\/#website","url":"https:\/\/prosfunds.com\/","name":"Funding Factories","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/prosfunds.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/prosfunds.com\/#organization","name":"Funding Factories","url":"https:\/\/prosfunds.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","width":780,"height":140,"caption":"Funding Factories"},"image":{"@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","caption":"News Room"},"sameAs":["https:\/\/prosfunds.com"],"url":"https:\/\/prosfunds.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/4207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4207"}],"version-history":[{"count":1,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/4207\/revisions"}],"predecessor-version":[{"id":4210,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/4207\/revisions\/4210"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/media\/4208"}],"wp:attachment":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}