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Scott and Tammy Watson's Blog

By Scott and Tammy Watson | Broker in Prosper, TX

Buying is cheaper than renting in most U.S. cities


Home prices have taken such a beating and demand for rental units has increased so much that it's now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities.

Buying is cheaper than renting in almost 75% of the country's 50 largest cities in July.

In addition to a continuing decline in home prices, Texas interest rates have added a lot of weight to the buy side of the scale. The overnight average rate for a 30-year fixed was just 4.19% on Monday, according to Bankrate.com. A 15-year fixed averaged just 3.43%.

Add in the tax perks of home ownership and for those who can afford it (and who can actually qualify for a loan), it certainly is a buyer's market.

"So, if you have a steady job and you are planning to stay for seven years or more and have enough cash to put 3.5% - 20% down and enough left over for seven or eight months of expenses, you're better off buying.

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