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By Tyler Durden via ZeroHedge<\/a><\/p>\n

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The math is truly daunting for would-be homebuyers:\u00a0The difference between the mortgage payments and rents is the largest it’s been since the 2006 housing bubble that led to the Great Recession.\u00a0<\/strong><\/p>\n

Factoring in an assumed 10% down payment on newly purchased home, the National Multifamily Housing Council\u00a0says<\/a>\u00a0a 30-year fixed-rate mortgage payment costs a whopping $1,176 more than renting an apartment,<\/strong>\u00a0as of the end of 2022.<\/p>\n

“Rapid home price appreciation in recent years coupled with rising interest rates<\/strong>\u00a0has caused the monthly cost of homeownership to rise far more than both the cost of rent and other consumer goods,”\u00a0said<\/a>\u00a0the National Multifamily Housing Council, a trade group for the apartment industry.<\/p><\/blockquote>\n

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The cost of owning a home has soared 71% in three years<\/strong>\u00a0— an average of\u00a0about 20% per year<\/a>, compared to an average annual rent increase of 6.3%.<\/p>\n

This week — in the wake of banking collapses that have pushed benchmark Treasury rates lower —\u00a0mortgage rates fell for the second consecutive week<\/strong>, with the average 30-year fixed mortgage\u00a0falling 18 basis points to 6.42%<\/a>.<\/p>\n

Higher rates have thrown cold water on home sales<\/strong>, to the extent they fell 12 consecutive months before February’s stunning\u00a014.5% month-over-month surge<\/a> in existing home sales.<\/p>\n

\u201cIf mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season,”\u00a0said<\/a>\u00a0Freddie Mac chief economist Sam Khater.<\/p>\n

February new-home sales\u00a0rose 1.1%<\/a><\/strong>, to the best pace since August. Meanwhile, February’s median sales price of a new home was\u00a0$438,200<\/a>, according to a report from the Census Bureau and the Department of Housing and Urban Development. That’s up 2.5% from the previous February.<\/p>\n

\u201cHome shoppers are looking to find the optimal combination of prices and mortgage rates before entering the market,\u201d<\/strong>\u00a0Hannah Jones, economic analyst at Realtor.com, told\u00a0Bloomberg<\/em><\/a>. \u201cHowever, elevated rates and high prices mean that point doesn\u2019t yet exist in the market for many would-be buyers.\u201d<\/p>\n

While the cost of homeownership remains stubbornly high,\u00a0rent inflation has been on a steady nine-month\u00a0cooling trend<\/a><\/strong>, with the yearly growth rate easing to the lowest point since 2021.<\/p>\n

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More From The Real Estate Guys<\/i>\u2026<\/h5>\n<\/div>\n