Following the real estate bubble burst, millions of Americans had to put their dreams of becoming homeowners on hold as they waited for their financial situations to improve.
This subsequently forced many to rent properties, which led to increased rental rates across the country. As a result, purchasing property is now 45 percent less expensive than renting a home in most areas, equaling savings close to $771 per month, according to a report from Trulia.
In the past year, average asking prices for home sales rose 2.3 percent, but this was countered by a 4.7 percent spike in rental rates, the report said. An additional factor contributing to the affordability of buying a home, is fixed mortgage rates hovering near all-time lows.
During the week ending September 6, the average rate for a 30-year FRM fell to 3.55 percent, from 3.59 percent a week earlier, according to a report from Freddie Mac. Meanwhile, 15-year fixed-rate mortgages held steady at 2.86 percent.
This marginal change was the result of mixed economic data, such as improved consumer confidence, while growth across a number of industries shrank, said the mortgage giant's vice president and chief economist Frank Nothaft.