Real Estate News - October 1.10.2022, XNUMX - How to make the decision to buy versus rent when mortgage rates rise
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With mortgage rates on the rise, more people may be asking themselves the age-old question: rent or buy? These decisions are particularly relevant against a backdrop of bubble-like housing prices, which make monthly mortgage payments more difficult to manage, and skyrocketing rents that have proven to be one of the economy's stickier forms of inflation. The Federal Reserve's recent interest rate hike, while not directly related to mortgage interest rates, does affect lending and home prices to some extent. And the Fed is still not done raising interest rates this year. The average 30-year fixed mortgage rate was 6.10 percent as of Sept. 13, according to Bankrate.com, and it rose steadily to 6.43 percent on Tuesday, according to the mortgage rate comparison service, after the Fed's most. The latest decision last week to raise the benchmark interest rate by three quarters of a percentage point - the third time in a row that it raised the interest rate by this amount. Look at the big picture Corey J. Phillips, a financial adviser at Fort Pitt Capital Group in Pittsburgh, said he's heard from clients who are worried about buying now because of rising prices. But prices are only one consideration when it comes to buying a home. Although higher than in the recent past, the rates are still at the average levels of the past 30 years, he said. "In recent years, as consumers, we have gotten used to such a low rate. Now this is our expectation", he said. Continue reading: https://www.forumnadlanusa.com/2022/09/how-to-make-the-buying-vs-renting-decision-when-mortgage-rates-are-rising/
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