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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## young working professionals ##### This topic has 1 expert reply and 2 member replies ## young working professionals In a fast changing market and while still single, young working professionals often change jobs and switch job locations. Such uncertainty discourages these young professionals from buying a home. When settled with a spouse and a stable job, however, these young professionals generally choose to buy real estate. Surprisingly, in cities where the industry and market are quite stable, young working professionals are still not buying, even though they are not changing jobs and may already be settled down in a spousal relationship. Which of the following, if true, most helps to explain the surprising finding? (A) Stable markets do not themselves entice working professionals to buy real estate rather than to rent it. (B) Brokers readily connect for-sale-homes with working professionals who have stable jobs and are in spousal relationships. (C) The stability of industries varies widely from city to city. (D) A very expensive home can significantly decrease the ability of a working professional to fulfill his mortgage payments. (E) Due to lending constraints, banks have increased the down payments required for consumers to obtain mortgages for new homes. OA E I can't figure out how to choose between A and E. Senior | Next Rank: 100 Posts Joined 31 May 2014 Posted: 98 messages Followed by: 2 members Upvotes: 1 A is not in the picture.... E provides a reason why young professionals are not following the trend ### GMAT/MBA Expert GMAT Instructor Joined 22 Feb 2010 Posted: 2193 messages Followed by: 509 members Upvotes: 1186 GMAT Score: 770 This part of the stimulus takes out choice A Quote: When settled with a spouse and a stable job, however, these young professionals generally choose to buy real estate. Generally means "most of the time." So it appears that young professionals do in fact desire to buy real estate if they have a stable job and spouse. The conclusion of the argument is what points you to choice E. You see the evidence talks about what young professionals want to do but the conclusion says that at this time, young working professionals are not buying. So what could come between choosing to buy a house and actually buying it? The mortgage! Choice E tells us that these people are not qualifying for mortgages because they are young and so lack the down payment. _________________ Veritas Prep | GMAT Instructor Veritas Prep Reviews Save$100 off any live Veritas Prep GMAT Course

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Senior | Next Rank: 100 Posts
Joined
14 Aug 2007
Posted:
90 messages
2
Good question. I also got stuck between A and E. I think we can ask whether E stands in the way of buying? Defenetely YES (assuming mortgage is default meidum to buy house). Will A stand in the way? May be.

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