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Debate on Millennials vs. Mortgages Is Heating Up -- ICYMI

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Morgan Stanley says the millennial generation will be huge for banks. 

Morgan Stanley's note out on banks only mentioned loan growth in general to millennials over the next decade, so one can only imagine what portion of that will be new mortgages.  

Millennials and Banks 

"We see millennials driving new consumer loan demand for 10+ years," Morgan Stanley bank analysts wrote in a Thursday note. "Not only are millennials surpassing baby boomers in numbers, they look to become the largest borrower within the next decade. In fact, our work analyzing the Fed's survey of consumer finances shows that millennials are already driving the bulk of new consumer loan growth today." 

Morgan Stanley is looking for loan growth of about 4% per year for the next several years, with millennial's driving about 70% of that growth. 

Chief Economist at LendingTree Tendayi Kapfidze told TheStreet in March, "The demand for housing is going to be strong, given the size of the millennial generation."

While the sheer size of the millennial generation could see home loan growth through for the long term, one of the core risks to the housing market is student debt.

"Now they're [baby boomers] going into their seventies and they really need to sell their homes, and the millennials don't want to buy them ... and again, unless that student loan issue is addressed on Capitol Hill... it's going to continue to be a drag on this generation," Danielle DiMartino, former adviser to the president of the Dallas Fed told TheStreet. 

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