In Trulia’s latest Rent
vs. Buy Report, they explained that homeownership
remains cheaper than renting with a traditional 30-year fixed rate mortgage
throughout the 100 largest metro areas in the United States.
The updated numbers actually show that the range is
from an average of 17% in Honolulu, all the way to 63% in Detroit, and 38%
Nationwide! This is up from an average of only 5% cheaper in Honolulu
in April.
The other interesting findings in the report
include:
Rents have continued to increase nationally even as
home price increases are starting to slow. Current low mortgage rates have kept
homeownership from becoming more expensive than renting.
Some markets might tip in favor of renting next year
if home prices increase at a greater rate than rents and if – as most
economists expect – mortgage rates rise, due to the strengthening economy.
Nationally,
rates would have to rise to 10.6% for renting to be cheaper than buying – and
rates haven’t been that high since 1989.
Bottom
Line
Buying a home makes sense. Rental costs have
historically increased at a higher
rate of inflation. Lock in a mortgage payment now before
home prices and mortgage rates rise as experts expect they will.
No comments:
Post a Comment