ABBA First Mortgage News

More renters- Higher rental payments! Now’s your chance to own your home while rates are still low!

If renters in your area are on the fence about whether to buy, now might be a good time. Rent hit an all-time high last month, hitting a national average of $1,408, according to new data, which might make homeownership more attractive – but it may be the growing challenges of homeownership that are driving the increased popularity of renting.

According to a study from RentCafé and Yardi Matrix, rent rose nationally by 2.9% year over year and 0.9% month over month. Rent increased in 88% of the country’s 250 largest cities, stayed static in 10%, and decreased in only 2%.

Renting is gaining popularity among families, according to RentCafé, and two- and three-bedroom units have been the main drivers of rent growth so far this year. However, June’s increases were almost perfectly balanced among unit types, as demand for one-bedroom and studio apartments caught up to demand for larger units.

“None of the rental mega-markets of the country escaped steep rent increases this month,” RentCafé said.

Orlando saw the largest proportional increase, with renters paying an average of 8.4%, or $104, more per month than they did in June of 2017. Apartments in Tampa, Phoenix and Las Vegas cost between 6% and 7% more than they did last year.

It seems that higher rents would cause renters to at least consider the option of purchasing a home while rates have remained stagnant instead of spiking up as predicted 2 years ago.  Check out the ABBA First Rates page.where you will still see that rates are in the 4’s for a 30 year mortgage.  Go to TOOLS on the menu bar and use the Mortgage Calculator to figure your monthly payment or call us at 910-332-0650 and let us walk you through the total payment of your new loan.

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