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Alec and Ashley Xenakis went back to renting, at least temporarily, when they moved to Tucson, Ariz., in August. They sold their home in the Denver area but found that buying a similarly-priced house would cost over a thousand dollars more a month because interest rates had risen so much since they got their sub-3% mortgage last year.
“We’re going to be paying more for interest, but I don’t think rates will be this high forever,” Mr. Xenakis said. Many Americans are still in a good position to buy, even if they have to reduce their budgets to compensate for higher mortgage costs. Consumers built up savings over the course of the pandemic and received pay bumps because the hot labor market gave workers more power to demand them.
Whenever possible buying is the better choice