Student debt has prevented hundreds of thousands of millennials from buying homes, Fed says

REUTERS/Andrew Burton

• Student debt has risen to $1.5 trillion, surpassing loans for cars and credit cards.
• That has led to fewer young Americans buying homes, according to a new Federal Reserve report.
• Loans have reduced recipients' ability to afford down payments and to secure mortgages.

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Mounting student debt has weighed on homeownership among young Americans, Federal Reserve economists said in a new report.

Homeownership among those ages 24 to 32 fell to 36% in 2014 from 45% in 2005, according to the report. While student loans were not the main factors influencing the housing market, the Fed said that about a fifth of the decline was directly linked to student loans. Pew Research defines a millennial as someone born from 1981 to 1996, or those ages 23 to 38.

See the rest of the story at Business Insider

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from Business Insider https://read.bi/2CuoQ4x