As mortgage rates get closer to 8%, it will take a lot longer for new homeowners to break even on their purchase, per Zillow data exclusively shared with Axios.
Driving the news: In the Portland metro area it could take more than a decade to break even on a typical house at current rates with a 20% down payment.
- That's how long you have to stay in your house before you can sell to make a profit and recoup expenses like mortgage interest, fees, and maintenance.
- For Portlanders who put down 3%, the time needed to break even is estimated at 12.5 years.
Why it matters: That's far longer than the traditional advice that you will recover purchase costs if you stay in your home for at least five years.
How it works: Zillow used typical price increases for each market to forecast the value of a median home and compare it to equity based on down payments of 3% to 20%.
Go deeper: The problem with America's high homeownership rate
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