COLUMBUS, Ohio — Shaun Simpson with Real Broker in Columbus said mortgage rates are higher compared to the last ten years.
As of Thursday, Simpson said he's seeing interest rates around 7.5%, a steady increase since January.
“Really what most people are looking at, they don't look at price. They look at [monthly] payment, monthly payment? monthly payment exactly,” said Simpson.
Overall, Simpson is seeing more people rent than buy because there are few buying options right now.
In Columbus, Simpson said a lower supply of both apartments and homes ramps up the prices compared to other major cities.
Alican Avci recently rented an apartment in Columbus but hopes to eventually own a home.
“Right now, I don't want to rent. I want my own space, but I cannot think about it at the moment,” said Avci. “I was thinking even mortgages options but unfortunately the earnings I make right now wouldn't cover it."
Simpson said there are some advantages to buying a home, if possible.
“You have your interest rate deduction on your taxes. You're paying down principal and it’s also inflation proof, where rental it may be cheaper today, but we'll see in five years when the rent goes up if the landlord decides to do that.”
Simpson, along with other local realtors, believe location is a huge determinant of pricing.
“If you're living up in Powell, there is so little on the rental side that the buy side is actually less expensive, even with the appreciation we've seen,” said Simpson.
While buying a home is a huge commitment, Simpson said the decision depends on a person’s specific needs and circumstances.
“If you don't want the maintenance, you don't want to deal with all the utilities, if you want to fix something when something breaks and don't want to deal with a lot of phone calls renting is a better option," Simpson said.
Local realtors say interest rates are at or near the top. It could be many months or even years before rates come down significantly.