April of 2023 revealed that the premium to own a home versus renting has significantly increased. According to John Burns Research & Consulting, the monthly premium is now at $1,030 per month compared to $884 the year prior. This increase can be attributed to a combination of factors.
The most significant contributing factor is that the average 30-year fixed rate mortgage decreased to 3.48% while existing home prices continued to rise. This has resulted in higher monthly payments for home buyers but lower long term finance costs. Homebuyers also benefit significantly from the ability to convert saved rental payments into equity in the home.
The most important elements of this text include:
• Average 30 year fixed rate mortgage decreased to 3.48%: Lower long term finance costs for homebuyers
• Existing home prices have continued to rise: Resulting in higher monthly payments for homebuyers
• Homebuyers benefit from the ability to convert saved rental payments into equity in the home: Allowing homebuyers to financially benefit in the long term.
You can read this full article at: https://www.housingwire.com/articles/homeownership-is-now-1000-per-month-more-expensive-than-renting/(subscription required)
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