BUY OR RENT BY THE NUMBERS
Have you noticed all of the apartments going up around the Midlands. With the improving economy, rents are rising nationwide to the point that in many U. S. markets, it is more expensive to rent a home than to own one, on a monthly basis, primarily because mortgage interest remains deductible on tax returns. That seems like incentive enough to buy instead of renting. Plus, the expanding economy has worked to soften mortgage eligibility requirements. Credit score minimums have been reduced and rates are at a fifteen month low. Home prices have reversed their downward trend. Finally, rents are predicted to rise at twice the rate of home values. Now may be the time to jump in.
Fannie Mae polls 1000 households each month in its National Housing Survey to assemble the observations of consumers on the national economy and it polls to assess future expectations, broad economic themes. The survey also covers other housing topics, home prices, interest rates and rent. The most recent survey was a mixed bag on the future of the national housing market, so despite rising home prices and low mortgage rates, confidence in housing has diminished from the early Spring peak. Three clicks down since March, just 45% of those surveyed envision homes values to rise in the next year by an anemic 2.1% annually, and nearly 10% expect home prices to fall. Here is the kicker. Over the same 12-month period, Fannie Mae survey respondents expect U.S. rents to rise 4.1% percent. These are numbers that support being a landlord, not a tenant, and that is why apartment buildings are sprouting like mushrooms around Columbia
Fannie Mae began gathering these records in 1971. Since then, 30 year mortgage rates have averaged around 8.5%. By contrast, today’s rates average around 4.1%, and many lenders now quote in the 3% range. For renters, low mortgage rates make homes affordable for the long-term, while rents can increase from year to year.
Stay here on the Walt-Smith.Com website and find your new home on our link to the Consolidated Multiple listing service. We are here to help. Give us a call
Walt Smith, Broker
Coldwell Banker Residential Brokerage
803 622 5210