As mortgage rates approach historic lows, 40% of renters say they are planning to purchase a home in the next several months, according to a recent Freddie Mac survey. Forty-six percent of current homeowners said they plan to renovate their homes, while 29% they would refinance and 27% said they would consider purchasing a new home or additional investment property.
Despite a favorable interest rate environment for buyers, however, the survey found that among individuals renting their homes, an unprecedented number—84%—believe that renting is more affordable than owning. That figure was up 17 percentage points from a 2018 survey. The survey also noted that renters are more affected by affordability issues than homeowners; 42% of renters paid more than a third of their household income on rent, compared to just 24% of homeowners paying a mortgage.