There are some people who have not purchased a home because they are leary taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free you are paying a mortgage - either yours or your landlords.
With home prices rising, many renters are concerned whether they can afford to buy a home.
Mark Fleming, Chief Economist at First American explained that over the last three years, renter house-buying power has increased fast enought to keep pace with house price appreciation, so the share of homes that a renter can affort to buy has remained the same since 2015. Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been Assuming this trend continues, our measure of affordability, which takes into account income, interest rates and house prices, indicates that homeownership is still within reach for renters.
As an owner of a home, your mortgage payments is a form of savings which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.
Whether you are looking for a primary residence for the firt tme or are considering a vacation home, now may be the time to buy.