Even With Rising Prices, Homeownership is Still the Best Option
February 9, 2022
If you were considering buying a new home but decided that prices are too high and interest rates are on the rise, make sure you have all the facts before making a final decision to buy versus renting a house.
According to the latest report from ATTOM Data, a leading provider of nationwide property data, owning a new home is still more affordable than renting. The report revealed that owning a median priced home is more affordable than the average rent on a comparable property in 58 percent of the properties analyzed for the report.
In the latest Single Family Rent Index from CoreLogic, single family rent saw the fastest year-over-year growth in over 16 years. This is the sixth consecutive record high growth for single family rent.
What this means for you is that even though home prices and mortgage rates are rising, so is monthly rent.When you rent, the rising costs of rentals makes your landlord happy but doesn’t really have any kind of investment strategy for you. On the other hand, when you are purchasing a new home, as you pay down your mortgage and prices continue to rise, you are building equity. Plus, when you lock in your mortgage interest rates, you get stable and reliable monthly housing payments that do not increase.
All of this can see confusing and overwhelming. It is important to speak with a licensed real estate agent and a reputable mortgage lender to give you facts and strategies to help you make the best decision.