If you have ever thought about buying a home, you have most likely already asked yourself these two questions: “Can I afford to buy?” or “Can I afford to continue renting?

Housing market trends continuously fluctuate, and many people aren’t always up-to-date with current market information. The mortgage industry struggles of 2007-2008 scared many individuals into renting and it is still evident that many are still affected by this today. Countless renters do not know their full potential. No matter what someone is currenhome icontly paying for rent, their total cash expenses over a number of years will probably add up to a much bigger total than many may have realized.

If you’ve been thinking about taking the step to buying a home, this may be the perfect time to do so. Here are three solid reasons why buying a home now makes sense:

1. Mortgage Rates Are Low
Rates on fixed-rate loans are attractive, and rent is equivalent, if not more expensive than buying. Some mortgage companies are also a little more laid-back with their loan qualification requirements, compared to previous years.

Inflation rates are low, which promotes low mortgage rates. Mortgage rates are fluctuating around 4.25 to 4.5 percent currently. While this is an increase from the historic low of 3.35 percent at the end of 2012, the average mortgage rate for the past 30 years is roughly around 8 percent, meaning it is still an alluring rate for forthcoming home buyers.

Annual Average Mortgage Rates
Courtesy of the Keller Williams Vision Speech 2014

2. Renting Payment Equivalent to Mortgage Payment
In today’s market, rental inventory is very low which results in higher rental payments. Landlords are able to increase their rent which frustrates many tenants. Those tenants get tired of the rent increase but if they look elsewhere for a home, they will experience the high cost of rent as well. It is people like these that should definitely consider buying. These individuals may be able to lock-in a great rate with their credit history and end up paying equal or less in monthly payments as they build equity in a home.

3. Home Ownership Benefits
As you may very well know, paying rent does not build equity. Renting is essentially throwing money away each and every month. It really is money that you will never see again. On the other hand, buying is ‘investing’ in the future. You are capitalizing on the money you are putting towards a roof over your head because there are many added tax benefits. A homeowner is able to deduct the cost of your mortgage loan interest from state and federal income taxes. Additionally, you may deduct your property taxes and mortgage insurance. What can you deduct from your taxes from your rental payments? Nothing.

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