Would you like to read another blog post about the debate between buying and renting a home? Probably not. But I’m going to write this post anyway. And if you don’t want to read it, don’t. There are plenty more post that you can read.
I recently read a report who which said you shouldn’t buy a house, and that you should rent. Here’s a word that I haven’t heard in a long time.
I totally disagree with anyone saying you should rent instead of buy. However I’ll let them say what they’re saying. They’re saying that mortgage rates are rising. And yes, they will be rising. The Federal Reserve has raised the rates already once this year, and have publicly stated that they will raise the rates more. Recent predictions I just saw said that rates will rise to 4.3% in the fourth quarter. So this article is saying that since rates are rising like this, it will put home ownership out of the range of buyers and make it too expensive to purchase a home.
Our first house many years ago was at 8 and a half percent and our second house was at 12, The third house was at 16 until we finally refinanced at about about 9%.
And people are worried about 4.3%? The difference in a $200,000 mortgage rising from 3.9% to 4.3% is basically pennies.
In my opinion the only possible scenario where it is better to rent than to purchase a home, would be if you were very disciplined and investing the remaining in common stocks and bonds. But over the Long Haul, I think that real estate is a much better investment. Plus you get to live in your own home.