Low mortgage rate have kept home ownership less expensive than renting in all 100 large metro areas.
Even though asking home prices rose 7.0% last year, outpacing rent increases of 3.2%, the gap between buying and renting has narrowede only slightly. One year ago, buying was 46%cheaper than renting. Today its 44% cheaper to buy versus rent. In fact home ownership is cheaper than renting in all of America's 100 largest metros. Thats because falling mortgage rates have kept buying almost as affordable, relative to renting, as it was last year. According to Freddie Mac, between February 2012 and February 2013 the 30 yr fixed rate dropped from 3.9% to 3.5%, though rates have been rising since March.
As rates have already begaun to rise and prices are starting to increase there may not be as good an opportunity to buy in the near future so the time to act is NOW!
Sources for these calculations available upon request
Author:Andy Walker Phone: 201-424-8628 Dated: March 25th 2013 Views: 1,046 About Andy: Having lived in New Jersey for over 20 years, I have been a top producing Realtor and member of the ...
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