--(BUSINESS WIRE)--A graphic is available on Business Wire's website and AP PhotoExpress detailing the comparison of the housing and student loan market and the impact on future generations.
Unlike any other generation, Millennials are faced with a different economic reality. As in previous generations, college graduates will aspire to status of home owner. What they can buy, when they can buy, who they can buy from and how much they will pay to reach this milestone will be considered in light of their debt load and that of other debt-ridden graduates. This will impact the home buying industry for future generations. Until the level of student loan debt decreases, the cost of homeownership will remain high.
“In the next five years, the mortgage industry will see a slow but continual easing of credit standards. In hopes of generating higher demand, lenders will reset certain risk tolerances re-introducing non-prime products,” said John Dyer, Lending Practice lead for Carlisle & Gallagher Consulting Group (www.carlisleandgallagher.com). “The student lending market will undergo a dramatic structural re-engineering for federal loans; especially in the areas of payment terms, default services and consumer protections.”