We recently came across an article that discussed how the current ratio of the home ownership costs to income is at an all time low. This means that more people are going to turn to buying instead of renting; why continue renting when that monthly cost is almost exceeding a mortgage payment? In fact, the ratio is so out of balance, that in order for it to get back to normal the price of homes will need to increase by 38% or mortgage rates will need to increase by 7.9%.
Find out more about what will happen for investors and buyers (boomerang, entry-level, move-down, and move-up) if the economy keeps growing and interest rates stay low.
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