Own vs. Rent: A Growing Reason to Buy – WSJ.com

Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years.

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.ears and is less expensive than renting in a growing number of cities.

 

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15 cities. But affordability hasn’t done much to lift the sagging housing sector because many would-be buyers are unwilling to purchase a home or unable to qualify for a mortgage.

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Bottom Line – Fed moves to push rates lower, boost economy

Fed moves to push rates lower, boost economy

By Patrick Rizzo

It’s back to the future for the Federal Reserve.

Faced with a lethargic economy and a jobless rate hovering at 9 percent, the nation’s central bank reached deep into its bag of tricks on Wednesday and pulled out a move to spur growth that it hadn’t used in 50 years.

The move, dubbed “Operation Twist” when it was first used in 1961, is intended to push long-term interest rates lower, which the Fed hopes will spur lending, induce businesses to expand and tempt consumers into spending more.

The Fed said it will do that by selling $400 billion worth of short-term securities to buy longer-term securities, much like a homeowner swapping higher-rate credit card debt for a lower-rate home equity loan.

“The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less,” the Fed said in a statement after a meeting of its Federal Open Market Committee.

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Mortgage Rates Drop Slightly and Draw Closer to Four Percent Mark | Mortgage News | Daily National and State Headlines

Mortgage Rates Drop Slightly and Draw Closer to Four Percent Mark

Thu, 2011-09-15 11:19 — NationalMortgag…

According to the latest Primary Mortgage Market Survey (PMMS) from Freddie Mac, fixed-rate mortgages remain near their 60-year lows, as ongoing investor concerns over the European debt market kept Treasury bond yields low. The 30-year fixed-rate mortgage (FRM) averaged 4.09 percent, with an average 0.7 point for the week ending Sept. 15, 2011, down from last week when it averaged 4.12 percent. Last year at this time, the 30-year FRM averaged 4.37 percent. The 15-year FRM averaged 3.30 percent this week, with an average 0.6 point, down from last week when it averaged 3.33 percent. A year ago at this time, the 15-year FRM averaged 3.82 percent.

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via Mortgage Rates Drop Slightly and Draw Closer to Four Percent Mark | Mortgage News | Daily National and State Headlines.