Photo: Devin Smith/Flickr
Today, Millennials are given a bad rap as social media-addicts, career wanderers and trend chasers. Now, an economist is saying that the future of the American housing market depends on their financial success.
Susan Taylor Martin of the Tampa Bay Times recently reported on remarks made by the chief economist of Fannie Mae, a US mortgage giant.
Economist Douglas Duncan addressed a group of realtors at a seminar sponsored by Supreme Lending, a Dallas-based mortgage broker company. He explained that while Millennial employment rates are up, incomes are lagging behind.
“This is the weakest recovery of the last eight recessions,” Duncan said. “In no previous recession until this one did people expect their incomes to fall. In this one, they expected them to fall a lot. Is that a good environment to buy a house? No.”
Duncan said he believes that if Millennial incomes do not rise in the next few years, the housing market is in trouble.
While this isn’t exactly uplifting news, he also had some positive predictions for the realtors. He maintains that even if the Federal Reserve raises interest rates next month, rates on mortgage loans will likely stay low for several more months. As such, home sales are expected to stay strong in the near future.
Follow @bbhnyc for more on housing market forecast reporting.