Mortgage rates were hovering near 8 pct a couple of weeks ago. They have backed off but still remain elevated. So if you are put in a position, do you rent or buy a house? It depends on several factors.
First, how long do you plan to stay in the house? Short-term favors renting because with buying a house you have to recoup costs that are rolled into the mortgage.
Second, are you getting a great deal? I’ve stressed this before. I would not overpay for any type of real estate because of where we are in the economic cycle.
Third, if you buy, you can always refinance the high rate to a lower rate later down the road.
Lastly, how mobile do you need to be? In an age of mobile work, many people find themselves not wanting to put roots down in one place.