The Unbelievable Housing Trend Hitting AmericaApr 11 2012
Something crazy has happened to the housing market, something that most people never predicted they'd ever see. In many areas throughout the country, it's been reported that monthly mortgage payments are now less expensive than monthly rental payments on similar homes! Check out what's happening in San Diego here!
During a traditional housing market, mortgage payments plus annual taxes are much higher than monthly rental payments. Homeownership, the ultimate American dream, is usually in such demand that landlords have to push rent prices down to keep renting attractive to customers.
But after 2007, homeownership has become viewed as "risky" and while more and more people prefer to rent (pushing prices up), home prices have decreased and interest rates fell to below 4% - a very untraditional rate that hasn't been seen in over 40 years!
Experts are stunned by the new housing market, but aren't sure how long this trend will last. Once rates go up to 5.5%, mortgages would again be more expensive than renting. Check now to see if you could be saving money purchasing a home rather than renting.