As mortgage rates keep climbing, homes are more expensive for both renters and buyers (via CNBCMakeIt)
One of the advantages to buying a home is that mortgage payments can be cheaper than renting — provided you have enough money saved up to afford a down payment and other costs of being of a homeowner.
However, even though U.S. rent prices surged in the last year, that rent growth has been outpaced by rising mortgage payments in recent months as home prices continue to rise, according to aThe study looked at two metrics to measure price growth: the median monthly asking rent for all apartment types in the U.S. and the median monthly mortgage payment for new homebuyers with at least a 5% down payment. Rents have grown 15% year-over-year since last February, while mortgages have grown 31%.
The pace of mortgage payment growth has accelerated since the beginning of 2022, according to Redfin's data. Rising mortgage costs hasn't immediately led to fewer buyers, however. "We haven't really seen a slowdown in the housing market yet, and it might just be a bit delayed, with people still rushing to buy homes before mortgage rates go up even more," says Daryl Fairweather, chief economist at Redfin.
That may soon change, however. The average rate for a 30-year fixed mortgage is 4.53% as of Thursday, which is 0.06% higher since last Friday,
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