If anyone is hoping that the younger, educated generation of college graduates will be the ones to step up and buy homes to jump start the economy then they are mistaken, Dubitsky says in the report titled Are There Any Rungs Left on the Housing Ladder?
The firm looked at two hypothetical scenarios: one in which interest rates rise one percentage point a year for three years straight, with rates creeping up steadily each month, and a second where rates jump two percentage points over three months and then remain steady for the remainder of the three years.