In the last year, the rate for a 30-year fixed-rate loan rose from 3.75% to more than 4.50%, raising the cost of buying home relative to renting. Homeownership is now 35% cheaper than renting nationally, down from being 45% cheaper one year ago.
"While it's hard to believe after the recent spike in rates, it's still more than one-third cheaper to buy a home than to rent," said Jed Kolko, Trulia's chief economist. "Recent rate and home price increases have made buying significantly more expensive than last year, but not enough to tip the math in favor of renting. This is because rates remain well below historical norms, and prices are still slightly undervalued, too."
Source: NAMP Daily
Compliments of Suzanne Smith