When deciding whether or not to buy or rent a home, purchasing a home is typically more favorable in many of today's housing markets, depending on how long a buyer plans to stay, but one generation still struggles with the buy versus rent decision.
Zillow's Breakeven Horizon analysis for the fourth quarter of 2015 found that buyers break even 1 point 9 years faster than renters on the same home in 70 percent of housing markets. The millennial generation struggles with the decision to buy a home because of job mobility. On average, this generation works at the same place for an average of three years. Zillow says that it may not make sense for them to buy a home if this is case, even if the mortgage is more affordable.
Just when the industry thought mortgage interest rates could not get any lower, they dropped further for the fifth consecutive week, but the decline in rates is providing more opportunities for borrowers to refinance. Freddie Mac's Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage averaged 3 point 72 percent with an average 0 point 6 point. Last week it averaged 3 point 79 percent and a year ago at this time, it averaged 3 point 59 percent.