I recently read a report where a major television news media said that it is better to rent a home then to purchase it.
I think that’s crazy. They’re saying that rising prices and rising interest rates make it better to rent then to purchase a home at this time. They’re saying that the interest rate which is currently around 4% may go up to 4.3% by the end of this year.
OMG! Interest rates will go up by almost four tenths of a point?
On a $200,000 mortgage that’s $42.00 ! How could people possibly afford that? They should absolutely start renting. And since the housing market is so hot and there’s such a shortage of inventory, home prices will be going up.
What they don’t seem to think about, is that rents will also rise.
And if you buy now, you will lock in your housing costs. Why? The reason is your mortgage payment will be fixed for the next 30 years or until you pay it off. And the only thing that will be going up is taxes.
But rents will just keep on continually rising. So I put absolutely no credence into this report by a “major media outlet“.