10/06/2026
Mortgage rates are over 7%… does that automatically mean renting is the better choice?
Not necessarily.
A recent analysis from Homes.com looked at today’s market alongside housing conditions from the mid-1990s, when mortgage rates were also around 7–9%.
The mortgage rate isn’t the only thing that matters.
What matters is the relationship between the price of the home and the cost of rent.
• Lower-priced homes today are selling for roughly 9× their annual rent
• Mid-priced homes are around 13× annual rent
• Historically, homes priced below about 14× annual rent often favored buying over the long run—even when mortgage rates were high.
That doesn't mean buying is automatically the right choice for everyone. If you're planning to move in a few years, looking at higher-priced homes, or able to invest the difference between renting and owning, renting may still make more financial sense.
But here's the part I don't want buyers to miss:
Don't let a 7%+ interest rate be the only reason you decide not to buy.
Instead, look at the whole picture. Purchase price, monthly payment, rent for a comparable home, how long you plan to stay, and the opportunity to build equity over time.
The market doesn't have to be “perfect” for buying to make sense. It just needs to make sense for YOU.
If you're wondering whether buying or renting makes more sense for your situation, let's run the numbers together.
— Lindsee Dechant | Realtor
RE/MAX ONE | Garden City, KS
https://www.homes.com/news/analysis-buying-can-still-beat-renting-even-with-mortgage-rates-above-7/1215086240/
With mortgage rates above 7%, it's easy to assume that renting must be the better deal.After all, every percentage point added to a mortgage rate
