Fannie Mae reveals what’s going on with the sense of accommodation
Patrick Stoy, broker-owner of Wilmington-based MC Mortgage Group, was asked if the survey results reflected his own experience with clients.
He said he felt some clients were taking on too much debt, given their financial constraints. Speaking to MPA, he said: ‘I’ve had people in my office who have gone under contract for properties and they commit themselves to a loan of $250,000 even though the payment is cheaper than what they pay in rent.
“That’s still a lot of debt to pay off, considering their current income is a single income household. It really is almost impossible to buy a property these days unless you have multiple sources of income flowing into a house.
Fannie Mae’s latest survey results also support the view of Dr. Robert Dietz, Chief Economist and Senior Vice President for Housing Economics and Policy for the National Association of Home Builders (NAHB), who has recently warned that tighter monetary policy and higher interest rates hurt housing affordability and shut young families out of the market.
“At the turn of the millennium, about 10% of young adults aged 25 to 34 lived with their parents. Today, that rate is over 20% and has doubled over the past two decades,” he told MPA, suggesting lack of housing as one of the reasons.