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Student loan forgiveness could help first time homebuyers

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Posted at 8:50 AM, Oct 20, 2022
and last updated 2022-10-20 14:31:59-04

DENVER, Colo. — The student loan forgiveness program could help 43 million Americans lower their debt, and with less debt, that means more Americans could buy their first home.

In a study by finance company Rocket Mortgage, almost 80% of millennials said they could see themselves buying a new home in the near future once part of their loans are forgiven.

Rocket Mortgage surveyed thousands of borrowers across the country and found nearly 40% of millennials who took out student loans have never had the opportunity to own a house, and forgiveness could help more people buy homes sooner.

Seventy percent of millennial borrowers who intended to buy their first home in four to nine years said they believe they could buy in one to three years with student loan forgiveness.

Even with more buyers on the market, Rocket Mortgage estimated the market for medium price range homes, homes priced between $200,000 to $400,000, will have the greatest competition.