2023 has been rough for the mortgage and housing industry. However, the year is ending with optimism for better times ahead. Last week, the Federal Open Markets Committee (FOMC) held its short-term policy interest rates steady. Federal Reserve Chairman Jerome Powell said that while inflation remains “elevated,” the Fed anticipates making three 25 basis rate cuts in 2024, a signal to investors that rate hikes are over and a new phase of monetary policy is approaching.
At the beginning of November, rates were just under 8% for 30-year fixed-rate mortgages. That was painful for new home buyers. Already, mortgage rates are coming in under 7% and, in some cases, closer to 6.5%. Although 6.5% is not wonderful compared to the historic lows we had in 2021, it is much better than 8%!
Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question.
This calculator (provided by our "go to" mortgage broker Margie Hofburg helps you weed through the fees, taxes, and monthly payments to help you make a decision between these two options.
This report is based on the original purchase price, fees and taxes payable at that time. Insurance and tax costs can fluctuate from year to year. Click the "View Report" button for a detailed look at the results.