Recent Homeowners Are Taking On Debt To Stay Afloat

Recent homeowners are finding out how unprepared they were to buy a house in today’s high-rate, high-price market, taking on debt to stay afloat and regretting their decisions. In a new survey from Clever Real Estate, 38% of 2023 and 2024 homebuyers said they overpaid for their home, with 50% locking in a higher interest rate than they planned in order to get a mortgage. Since that purchase, 44% have taken on extra debt to maintain their preferred lifestyle, while 43% have struggled to make mortgage payments on time. These buyers feel in over their heads since buying a home, and many of them ended up compromising on their priorities, including spending more than they budgeted for. “Often, homeowner regrets…

Student Loan Payments To Affect Americans’ Homebuying Power

Student loan payments are set to resume this October, giving Americans yet another monthly bill to stress about, and the impact is expected to set in early. “It’s going to quickly reverse all the progress that was made during the repayment pause, especially for those who took out new debt in mortgages or auto loans where they had the financial room because they weren’t paying their student loans,” Laura Beamer, who researches higher education finance at the Jain Family Institute, told the New York Times. Monthly student loan bills before the pandemic came in between $200 and $299, a serious chunk of change that borrowers have not had to budget around. A report by the Federal Reserve found that about…

Commercial/Multifamily Mortgage Debt Up In Q2

Outstanding commercial and multifamily mortgage debt rose 1.5% in Q2 2021, an additional $60.7 billion, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Multifamily mortgage debt specifically increased $23.8 billion, or 1.4%, to $1.7 trillion from Q1. Total commercial and multifamily debt rose to $3.98 trillion. “Strong demand from all of the major capital sources led to another increase in the amount of commercial and multifamily mortgage debt outstanding,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “In line with the strength of apartment fundamentals and values, there was a solid increase in the amount of multifamily mortgage debt outstanding. Additionally, the increase in mortgage debt on other, non-multifamily commercial properties…

U.S. Average Credit Score Hits Highest Point In 13 Years

Americans’ average credit score rose seven points from 2020 to Q2 2021, reaching 695, the highest average in more than 13 years, according to Experian’s State of Credit report. “The findings from this year’s report show something I’ve always believed: Americans are resilient, for the most part they make smart decisions in the face of adversity and they are agile in adjusting their financial habits when the environment or circumstances change,” said Alex Lintner, President, Experian Consumer Information Services. Consumers across all generations except Gen Z lowered their credit card balances and utilization rates. They also missed fewer payments. Minnesota held the highest average score, 726, while Mississippi held the lowest, 666. New Jersey had the highest number of credit…

QuoteWizard: American Debt Dropped During The Pandemic

Americans made a dent in their debts during the pandemic, according to a new study from QuoteWizard. Analysts for QuoteWizard, an online lead generation marketplace for insurance, monitored thirty-three debt metrics between February 2020 and October 2020. They found that credit scores improved, people made more payments on their student loans, and the number in debt collection dropped. Nationally there was a 10% decrease in subprime credit scores and a 2% decrease in debt collection. Student loan delinquency and credit card delinquency both fell, by 32% and 31% respectively. “Americans having less debt has broader implications across the whole economy. The better your credit score, the less you are going to pay on everything from auto loans and home mortgages…