Did The Federal Student Loan Payment Pause Spur On More Home Buying By Recent Grads Who Built Savings For A Downpayment And Closing Costs?


Did The Federal Student Loan Payment Pause Spur On More Home Buying By Recent Grads Who Built Savings For A Downpayment And Closing Costs?
By Scott Rogers • October 6, 2023
Federal student loan payments were paused for three and a half years. For graduates who attended public schools, the average federal student loan debt at graduation seems to be around $25K... which worked out to be a student loan payment of $280 per month. 3.5 years = 42 months $280 x 42 = $11,760 Recent grads with average student loan debt, with average student loan payments, would have been able to save up about $12,000 over the past three and a half years when federal loan payments were paused. Did this pause in payments on student loans allow some would-be home buyers to build up savings to put towards a downpayment or closing costs for a home purchase? Quite possibly. There seem to be many reasons why we saw a surge in home buying activity over the past few years... 1. Covid-induced changes to work / life / home situations. 2. Super duper low mortgage interest rates. ...and maybe... 3. College graduates building up savings due to not needing to make student loan payments for a few years. But, back to reality, student loan payments have started back up again now. So if you were building up some savings with those (non)payments -- you'll now need to divert those monthly funds back towards paying off your student loans. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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