Until mortgage rates hit 10.5%, buying will still be cheaper than renting
Mortgage LoanThe recent rise inĀ mortgage rates has made buying a house a little more expensive: the increase in the 30-year fixed rate over the past month from 3.4% to 3.9% (Freddie Mac) raised the monthly payment on a $200,000 mortgage by $56, or 6%. However, because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper thanĀ renting. That means that the recent jump in rates doesn’t change […]