Study: Effects of mortgage crisis still felt by younger, older generations
Posted on Friday, October 10, 2014 at 9:37:17 AM
The recent mortgage crisis and economic recession left a lasting impression on the U.S., including on consumers with residential financing and other types of loans.
According to a recent study from TransUnion, these effects have changed the types of financing for several demographics, specifically the youngest and oldest among us, HousingWire reported. For example, student loans are now most common for consumers between the ages of 20 to 29. On the other hand, mortgage loans experienced the largest decrease for this age bracket over the past nine years.
Essentially, younger borrowers became more interested in student loans and less interested in home loans following the recession.
"The mortgage crisis and recession had a profound impact on the country, with many consumers still feeling the effects today," said Charlie Wise, vice president in TransUnion's Innovative Solutions Group, according to HousingWire. "Interestingly, our study found that the recession has had a lasting impact on two disparate groups - those consumers in their 20s and those ages 60 or higher - though in very different ways."
In addition, the Mortgage Bankers Association reported that applications for new home purchases remained flat on a monthly basis this September. Conventional loans made up 67.6 percent of total applications, followed by FHA loans at 16.7 percent.