Student Loan Debt Crisis is Linked to Lower Home Values

New analysis of government data by the National Assoication of Home Builders(NAHB) reveals a connection between rising student loan debt and the onset of the housing slump, and offers yet another example of how lower home values have hurt millions of middle class households and threatens the fragile economic recovery.

To get housing back on track and prvide the foundation for a long-lasting economic recovery, the NAHB called on leaders in Washington to provide access to mortgage credit for qualified borrowers, demonstrate their support for the mortgage interest deduction; support affordable downpayments for home buyers; enact reforms in appraisal practices and oversight to ensure that appraisals accurately reflect true market values; and establish a strong housing finance system that retains a federal backstop to ensure that standard 30 year fixed rate loans and adjustable rate mortgages remain readily available for working class households.