Should You Rent or Buy When Mortgage Rates Are High?

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Every year, millions of Americans wrestle with the question of whether to buy a home or rent. Unfortunately, the answer is rarely straightforward.

Many factors affect this tough decision. But the choice becomes even more difficult when both rents and home prices are soaring, as they are now in many places. In addition, mortgage rates have been rising, with the average fixed 30-year mortgage increasing by more than 2 percentage points this year to more than 5% in recent months.

Although buying a home can be a great investment, it is not right for everyone, says Brittany Mollica, certified financial planner with Hilltop Wealth Advisors in Chapel Hill, North Carolina.

“I think the main takeaway is that buying a home is by no means a requirement for financial success,” she says. “There are some important things to think about before you do it.”

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