Buying in metro Phoenix is as much as 34 percent cheaper than renting a house, based on current home prices, rents, types of mortgages and interest rates. The comparison comes from home-buying website Trulia, but the data appears to be unbiased.
Falling interest rates over the past few weeks have made buying more affordable for most people. The average rate for a 30-year mortgage is 4.12 percent, according to Freddie Mac. That's compares with 4.23 a month ago.
Nationally, Trulia says buying is now 38 percent cheaper than renting if you stay in a house seven years, get a 30-year mortgage, put 20 percent down, itemize deductions at the 25 percent tax bracket and get a 4.3 percent mortgage rate. The formula also takes into account closing costs, insurance, maintenance and taxes.
What is really surprising about the survey is that buying is cheaper in all of the U.S.'s 100 largest metro areas.
The benefit is the smallest in Honolulu, where purchasing a house is 17 percent less expensive than renting. Detroit home buyers get the best deal because Trulia found it's 63 percent cheaper to own than rent.
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