Redfin CEO Glenn Kelman analyzes the state of the housing market after mortgage rates surged past 7% on"Cavuto: Coast to Coast."
Most survey respondents said homeownership rates will be affected for at least a year by the resumption of student loan payments – and many predicted the impact could be longer than that. 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 administrationlast November but will not do so again as part of the bipartisan debt ceiling deal approved by Congress.
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 recentCollectively, borrowers are to resume paying about $10 billion a month, according to an analysis from JPMorgan.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.