Soaring Mortgage Rates Make Home Ownership 52% More Expensive Than Renting

Amid high inflation and record-breaking interest rates, the average rate on a 30-year fixed-rate mortgage reaches 8.03%, resulting in general homeowner expenses rising and making buying a home more expensive than renting for the first time in the history of the US housing market.

Due to high inflation and record-breaking interest rates, the average rate on a fixed-rate mortgage has reached 8.03%, making homeownership 52% more expensive than renting.
The rising interest rates and high inflation have deterred many potential homebuyers, deferring the American dream of owning a home.
The last time mortgage rates were above 8% was in 2000, indicating that mortgage rates now are at the highest level in 23 years, with mortgage payments 52% higher than average monthly new lease costs.
Different locations within the US showcase varying disparities between rent and purchase prices, with some markets still offering affordability in buying rather than renting.
Due to high living costs and the high mortgage rates, potential homebuyers are advised to wait until the market cools down, especially those who may be expecting an income rise or are planning to boost savings before committing to a mortgage.