Time to Buy - Low Mortgage Interest Rates Are On the Rise

A real-time interactive rent vs. buy map from Trulia (click the image for more)

Mortgage interest rates are on the rise, according to a recent analysis by Trulia.  Buying a home in Chicago is still, overwhelmingly, favorable versus renting, but the longer you wait, the higher your cost of home ownership will be.

Rates have been unusually low in recent times, and with this turn of events, analysts believe, and we agree, that now is the time to buy.  Mortgage rates recently rose to 4.15%, according to the Mortgage Bankers Association, which is a spike from the low 3.59% rate of last month.

While the numbers are not far off of historical lows, if interest rates continue to rise above the 7% range (for Chicagoland buyers), rates may start to negatively affect affordability.  Historically speaking, when rates climb, they generally do so fairly quickly.

Trulia still concludes that nationally speaking, as long as rates are below 10.5%, buying is still cheaper than renting.  However, rising rates naturally make finding a home more expensive, regardless of the buy-to-rent ratio.  With the rates being low right now and looking to continue rising, we encourage those who are on the fence about exploring the market to start looking to buy before it becomes more of a financial challenge.

Give me a call or send me an e-mail, and we can figure out what is best for you.