There really is a difference between renting a home and owning a home. But, you knew that, right?
Since 2005, rent prices have skyrocketed
while the typical mortgage payment as actually decreased.
“It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018.
The national median sale price in December 2005 – $190,000 – was lower than the $220,305 median in December 2018, but because of higher mortgage rates in 2005 the typical monthly mortgage payment was slightly higher back then – $941 – compared with $904 in December 2018.”Insights Blog, CoreLogic
A recent report by the National
Association of Realtors (NAR) showed that purchasing a home requires less
of your monthly paycheck.
According to the Economists’ Outlook Blog, NAR’s February
2019 Housing Affordability Index showed that the “percentage of
income needed” to pay the typical mortgage has decreased the last three
months. Wow!
- November – 17.3%
- December – 16.9%
- January – 16.2%
- February – 15.9%
What does this all mean to the
current housing market?
“The mortgage rate-driven affordability surge has arrived just in time… Rising affordability has already benefited home buyers and, if the lower rate environment persists, we’re in for a great spring home-buying season.”
First American post
Still renting? Don’t think you can afford a house?
Contact me today and you may have a very
pleasant surprise.
