Should young adults stretch financially to buy a home?

Susan Wachter of the Wharton School said that young potential home buyers should resist the temptation to stretch their finances to take advantage of low interest rates. “Stretching to borrow can seem like the right thing to do, to take advantage of low rates, especially when young buyers think about all the years they have to both pay down the mortgage and to increase their earnings,” she said. “But buyer’s remorse can take over if and when housing prices plummet, especially if this occurs along with a recession.”

・ From The Wall Street Journal