Mortgage Rates Are Above 7%. Is It Better to Rent or Buy a Home Right Now?

Morningstar's Investing Insights episode looks at a US housing market where the 30-year fixed mortgage rate recently crossed 7% and has stayed there, according to the Mortgage Bankers Association, while home prices remain high. It covers the shift by some buyers toward adjustable-rate mortgages with lower initial rates but more risk, the effect of rate moves on home sales, and a comparison of monthly renting versus buying costs. The episode also takes up pressures on homebuilders, where affordability might return, a mortgage rate outlook, one stock the guest calls undervalued, and closes with an "Ask the Economist" segment on how elections and the economy can intersect.

1. The 30-year fixed mortgage rate recently crossed 7% and remains there, per the Mortgage Bankers Association.
2. Some buyers are choosing adjustable-rate mortgages that carry a lower loan rate but higher risk.
3. The episode compares monthly housing costs for renting versus buying and discusses when affordability could return.
4. Guest Suryansh Sharma, Morningstar's director of equity research covering housing, discusses market risks, a mortgage rate outlook and one stock described as undervalued.