A loan at last?
With mortgage rates at their lowest since early 2023🗹 and nationwide housing inventory up 22% over a year ago, itꦇ might be time for market-shy renters in Florida and other Sun Belt destinations to think about hopping onto the property ladder, experts say.
Fresh analysis published by Zillow Home Loans suggest a return to a more buyer-friendly climate in 22 out ofꦚ the 50 largest metropolitan areas in the United States, including the wildly popular Miami and Tampa regions.
In these cities, o🧸wning your own home may once again make more sense than renting, researchers said.
The average monthly rent in the U.S. at the moment is $2,063 per month — more the average mortgage payment of $1,827, which means that the typical buyer will save around ꦐ$236 a month by taking the plunge.
And while the Sunshine State definitely made the list of desirable destinations, New Orleans beat every other major city in the country — prospective Big Easy buyers can currently save to the tune꧟ of $450 a month by ♉taking out a mortgage, the data showed.
In Miami, the average savings would be $𝄹314, by comparison. In Tampa, $191.
Cities 🐷further to the north offering𒁃 their own sizeable price chops were Chicago, Pittsburgh and Memphis.
The Big Apple even made the grade, though cost-conscious Gothamites will save far less — rents averaging $3,471 and mortgages $3,399 mean a cost benefit of just $72, enough to cover a modest takeout bill.
Zillow’s number crunchers assumed a 20% downpayment, interest rates averaging 6.5% and a 30-year fixed mortgage.
“This analysis shows homeownership may be more within reach than most renters think,” Zillow Home Loans Senior Economist Orphe Divounguy said in a written statement.
“Coming up with the down payment is still a huge barrier, but for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter.
“With mortgage rates dropping, it’s a great time to see how your affordability has changed and if it makes more sense to buy than rent,” Divounguy explained.
Rents are leveling off after pandemic-era market shakeups. However, the average rent is 3.4% higher than in 2023 and nearly 34% pricier than in early 2020 — with no guarantees that prices won’t spike again, the pros warned.
On the other hand, Zillow reported, 1 in 4 sellers in the US are now chopping prices to accommodate a softening ma𒈔rket.