Buying Remains Cheaper

Dated: 10/17/2017

Views: 61

Image title

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 way 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 shades of blue in the map below).

Buying Remains Cheaper Than Renting in 39 States! | Keeping Current Matters

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, meet with me to see if I can help you find your dream home.

Start your Connecticut Home Search now: http://bit.ly/2o9Z79q 

Blog author image

Kris Morin

I was born and raised in West Hartford, spent most of my summers on the Connecticut shoreline and Block Island. I had found my love for real estate in 1990 assisting my mother, before launching my car....

Latest Blog Posts

Refi Options for Those With Low Credit Scores

If you want to get a second mortgage so you can make renovations to your home, it can be difficult if you have poor credit.A second mortgage can use a home’s equity as collateral for a second

Read More

3 Indoor Home Chores to Complete This Summer

It may be too hot to sweep out those rain gutters or clean that messy garage. But there’s plenty you can do in the cool of the indoors to keep your home in peak condition.Today’s

Read More

Steps to make your move seamless

Real Estate Relocation Guide: 7 Steps to a Seamless Move  Whatever your reasons are for relocating to a new area, the process can feel overwhelming. Whether you’re moving across

Read More

Pawcatuck Real Estate Market Report August 2018 from Bridget Morrissey

 The Pawcatuck Real Estate Market Report is a monthly statement of the average sales price, the median list price and the median price per square foot for Pawcatuck homes for sale.  

Read More