Buying Still Beats Renting, Despite Rising Mortgage Rates

New analysis from MarketWatch found that for many, investing in a home can beat renting costs in the long run, despite rising mortgage rates.

The 30-year fixed-rate mortgage from Freddie Mac is currently about 4.6 percent, a 0.6 percent increase from a year ago. Despite this, buying a home in the Washington metro area with the current 30-year mortgage and a 20 percent down payment would still save homeowners over renting, as long as they remain in the home for at least four years.

Most home buyers have more disposable income to pay mortgages. In their take-home pay, a higher standard deduction compensates them for not taking interest and property tax deductions, and lower rates overall actually boost most taxpayers’ buying power.

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