Buying Remains Cheaper Than Renting in 39 States!
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The updated numbers show that the range is an average of 3.5% less expensive in San Jose (CA), all the was up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!
A study by GoBankingRates looked at the cost of renting vs. owning a home at the state level and concluded that in 39 states, it is actually ‘a little’ or ‘a lot’ cheaper to own (represented by the two shade of blue in the map below).
One of the main reasons owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that the current interest rate on a 30-year fixed rate mortgage is 3.91%.
Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.
Bottom Line
Buying a home makes sense socially and financially. If you are one of the many renters who would like to evaluate your ability to buy this year, let’s get together and find you your dream home.
To see original article, please visit Keeping Current Matters.
How to Navigate a Market Where Multiple Offers Is the New Normal
To help you navigate bidding wars with multiple offers, an expert real estate advisor is key.
How Global Uncertainty Is Impacting Mortgage Rates
Rates will likely fluctuate in the short-term based on what’s happening globally.
Why It’s Critical to Price Your House Right
There are several factors that go into pricing your house and balancing them is the key.
An Expert Advisor Will Give You the Best Advice in Today’s Market
It’s critical to have an expert on your side who’s well versed in navigating today’s rapidly changing market.
Millennials: Do You Need a Home with More Space?
The past two years brought about significant changes for many people, and homeowners are reevaluating what they truly need in a home.
The Perks of Owning More Than One Home
With the rise in remote work, more people are reconsidering where they want to live and second homes give them greater flexibility.
Real Estate Voted the Best Investment Eight Years in a Row
As a homeowner, your house is an asset that typically increases in value over time, even during inflation.
4 Simple Graphs Showing Why This Is Not a Housing Bubble
This market is very different than it was during the housing crash 15 years ago.
What Every Seller Needs to Know About Renovating This Year
Speak with a real estate professional to confirm which improvements aren’t deal-breakers for buyers.
Are You Ready To Fall in Love with Homeownership?
Buying a home is not just a financial decision. It’s also a lifestyle decision. Are you ready?