The Real Deal Miami

Renters should buy when mortgage rates fall

December 22, 2008 03:41PM

Lower mortgage rates may pull more buyers into the market, and Seeking Alpha did the math on payments at different rates. A $1,000 payment on a 30-year fixed-rate mortgage at
4.5 percent would put 56 cents of every dollar spent toward mortgage
equity. But with a mortgage rate of 7 percent, only 42 cents of every
dollar goes toward equity. Mortgage rates were at record lows last week.