HIGHER EDUCATION BUBBLE UPDATE: Student Debt Hinders Housing. “As outstanding student debt approaches $1 trillion, it’s one more reason record-low interest rates aren’t doing more to boost housing. The tighter lending standards that have emerged in the wake of the recession weigh particularly on younger, first-time home buyers, according to a Federal Reserve study sent to Congress on Jan. 4. These households tend to be younger and often have relatively new credit profiles, lower-than-average credit scores and fewer economic resources to make a large down payment, the report said.”

Yep. It’s harder to qualify for a mortgage when you basically already have one.