A report by the Mortgage Bankers Association (MBA) has determined that high student loan debt is slowing the recovery of the real estate market. First time buyers are finding it difficult to meet al their obligations and are delaying the purchase of a home or choosing to rent instead of own.

FHA is also changing rules that had helped grads in the past. A rule change that could take effect in 2014 would eliminate a lender’s ability to ignore student debt that has been deferred when evaluating a mortgage loan.

First time buyers, especially those with good jobs like college grads, historically drive the housing market. Without these important buyers, housing market could remain slow for a longer period.