Share This Article
Renting Your Home May Be An Alternative To Foreclosure
Rental rates have risen drastically over the past year. Monthly rental payments are currently higher than average mortgage payments in the majority of US metro areas. For homeowners facing the end of forbearance program grace periods, renting out their home may be the best option for keeping it. Some homeowners have chosen to rent out their entire home and relocate to more affordable areas, and others are opting for renting out rooms. Either option can prevent foreclosure and loss of the property.
30 Year Fixed Mortgage Rate
|Change From Yesterday||0.031%|
|Change From One Week Ago||0.083%|
|Change From One Year Ago||-0.109%|
15 Year Fixed Mortgage Rate
|Change From Yesterday||-0.010%|
|Change From One Week Ago||0.058%|
|Change From One Year Ago||-0.411%|
Today’s Financial Headlines
Renting out your home may be the answer if you are struggling to make your payments, facing the end of your forbearance grace period, and you don’t want to sell. Whether this is a good financial move or not largely depends on where you live. For it to work, the rent payments you collect must be significantly higher than the mortgage payments you owe. This guide looks at the disparity between rent and mortgages in 50 metro areas.
Interest rates are predicted to steadily rise throughout the fall, but even the worst predictions do not call for rates to rise above 4% before the end of the year. The Delta variant of the COVID virus is creating economic uncertainty that should keep rates low until the pandemic begins to slow again. Recent economic reports are showing that the pandemic recovery is beginning to reverse, especially in the retail sector. The Fed is set to meet and discuss policy at the end of September.
The rapid increase in housing prices is driving inflation throughout all sectors of the economy. Both the Fed and Fannie Mae believe that this inflation will be temporary, and that we should begin to see a decrease in inflation early next year. However, if inflation does not fall and if labor shortages continue into next year, then we should expect to see the Fed aggressively taper its bond buying activity in 2022.