Buying vs renting: When home loan rates are high, which is cheaper?

Buying vs renting: When home loan rates are high, which is cheaper?

Dubai: Although you would ideally buy a home when both interest rates and home prices are low, what if that's not possible at any given time. Do you postpone your plans and continue staying in a rented house or do you go ahead and buy a new house anyway? Interest rates have been rising worldwide and this makes it unfavourable for a potential homeowner to borrow money when buying a home at the cheapest possible rate as interest rates on home loans increase as well. But do rising rates impact rents as well? By raising interest rates, those who would otherwise be in the home buying market, are encouraged to stay in their current home or rent instead. This decrease in demand should then help to lower, or at least level out, home prices, but it makes owning a home more expensive. Here’s how it works. While it’s possible for prices and rates to go down simultaneously, as home prices are also dependent on where you plan to live and what the housing market looks like in that area, it’s hard to determine whether you’ll encounter low prices and low rates at the same time. Predicting which way the real