ROCKFORD, Ill. (WTVO) — According to a new report, the current market for owning a home is at its most difficult time in almost 30 years.
The Wall Street Journal reported that it currently costs 52% more to buy a home than rent one due to rising mortgage interest rates.
The report says a 30-year, fixed rate mortgage on a $430,000 house, with 10% down, will cost a homeowner a monthly payment of $3,200, which is up 60% from just three years ago.
Rent is also up by 22% over the same period.
Local realtors still encourage home buying, saying mortgages can always be refinanced later…assuming the interest rates drop.
“By purchasing your own home, you’re building your own equity. When you rent, you’re paying someone else’s mortgage. So, think about it in terms of what I need to do to build long-term, generational wealth,” said Connor Brown, CEO of the NorthWest Illinois Alliance of Realtors.
The Rockford area currently has about 300 homes on the market, about a one month supply, Brown said.