This doesn't bode well for a 2008 part 2... Home owners will be forced to rent, driving prices up even further...
We were renting a 3 bedroom apartment for $1,800 a month. After working from home a bunch, I had banked $30,000 in cash and put down 7.7% on a $390,000 house.
Our mortgage went up $200 a month over rent, so $2,000 a month. 3.25% fixed, 30 years.
Our old apartment? 20 months later? $2,300 a month.
That $2,000 a month can also raise if you've included property taxes and insurance in the payment. If you're not including property taxes and insurance then you're not really doing a full comparison.
Our property tax actually went down $12 from year 1 to year 2. LOL.
1 year is not an example. Many mortgages are over 30 years.
As is mine, but I can only report what I've seen. ;)
The mortgage will go down again when the mortgage insurance drops off, but I have to have xx years of equity before that happens.
It's a wild slope.