Trulia: Buying cheaper than renting until rates reach 10.5%
The recent rise in 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% 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 than renting. That means that the recent jump in rates doesn’t change the rent-versus-buy math much.
Read the full report by Trulia here.