According to an analysis published this month by the National Multifamily Housing Council (NMHC) the difference in costs between renting and owning reached its widest gap in 15 yearsthis is due among other things to the increase in rates for mortgage loans.
According to the agency, rental prices grew between 2019 and 2022 by 6.3% each year. For your part. Home prices rose 17.4% and the average 30-year mortgage rate stood at 6.42% this weekthat is, it doubled its level.
Therefore, owning a property can cost $1,176 more per month than renting an apartment. NMHC Senior Director of Research Chris Bruen noted that median home sales price fell about 11%; however, they failed to get low enough to catch up with mortgage rates.
For Bright MLS chief economist, Lisa Sturtevant, “higher rates could mean further price declines in the coming months, but don’t expect prices to drop dramatically,” she said.
In a report published last Wednesday by the National Association of Realtors, it was explained that the average price of a home in the United States stood at $363,000 dollars in February, that is, 0.2% less compared to the previous year; however, this may vary depending on the city in which you want to buy.
However, some analysts say that high mortgage rates will play an important role in homebuyers who will use all their efforts to acquire a homewhile the owners will hesitate to sell the one they already have, due to the fact that they do not want to sign a new mortgage with a higher rate.
Source: La Opinion