Home prices are climbing. Mortgage rates have inched up. Inventory is low. Still, house hunters feeling the crunch should not despair. A home affordability calculator available by Trulia shows that even in high priced markets like San Diego, after just four or five years of occupancy, homeowners fare better than renters.
The rate at which homes are appreciating in value gives owners a better return on investment than the stock market, retirement accounts and other forms of savings. Rather than battling landlords over rising rent costs, owners gain the advantage of equity while being able to modify their home to fit their lifestyle.
Studies have shown that overtime, homeowners have net worth's far great than those of renters. As for mortgage rates, today conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.