Video Marketing Tips

Real Estate Video Marketing – As you may have heard in one of our most recent posts, this is one of the most overlooked niches still today, as only 4% of agents are actually taking advantage of this tactic  and 74% of sellers want an agent that uses video to market listing (according to Realtor.com).

Video can draw a multitude of visitors, can be reproduced multiple times without duplicate content issues, gets ranked very well in Google and can totally go viral with social sharing. If you are not currently using this, then you must integrate this into your real estate marketing plan  today!

Video Share Sites


1. YouTube YouTube isn't just an American favorite; it’s popular throughout the world. For More on YouTube Reviews.


2. Break The majority of the videos on Break are humorous, whether they are bloopers and

blunders caught on video or scripted clips created by users. More on Break


3. Vimeo Vimeo is quickly becoming both a popular video share website and a social

networking site. More on Vimeo


4. LiveStream This site is basically an all in one broadcast solution for video. You can create,

edit, and add things similar to broadcast companies could add.


5. Operator11 Go live with your camera and create your own channels. You can also send

video comments and remix your videos.


Recording Your Video Tips

~ Your Smart Phone or standard digital camera to take short video segments of each room or feature of the property. Keep the video segments to 10-15 seconds, just enough to describe what the viewer is watching. The goal is to create a video that is about 2-3 minutes long.

~ Have someone hold the camera or take along a tripod to do it yourself.

~ Feature yourself in the opening scene to introduce the property, and at the end to thank viewers for taking the video tour.

~ Consider creating permanent opening and closing video segments that you can

use with every video. In this way, you can have a polished, consistent opening

scene and closing scene. Then when you take the video segments at each

location, you need only take the segments for that property.

~ Inside the property, make sure to turn on all the lights, ceiling fans, fireplaces,

etc. so that you can capture these features in motion. As you’re shooting your

individual video segments, be sure to pan slowly so that you don’t create a blurry

video.

~ When taking each video segment, don’t start speaking until 1-2 seconds after

hitting record, and leave 1-2 seconds after speaking before stopping the

recording. ( you don’t want to cut your voice off!)





Have fun and remember to smile for the camera!

Help to make you Presentations Memoerable

5 Reasons We Forget Presentations from Rexi Media

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Parkfield Escrow Real Estate Agent Education Opportunity

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What Does it Take to Amend the CC&Rs?

One of the questions that we are often asked is “What is required to amend the CC&Rs?” Civil Code section 1355 (Civil Code section 4270 starting in 2014) provides that an amendment to CC&Rs is effective after all of the following requirements have been met:

• The requisite approval of the percentage of owners as required by the governing documents has been obtained,
• Written certification of the approval by an officer of the association, and
• Recordation of the amendment

While the specific approval required must be determined by looking at the specific set of CC&Rs, most such documents require the approval of a super-majority of owners, typically 67% of the total voting power. If the CC&Rs are silent on the required percentage of owner approval necessary to amend the CC&Rs, then Civil Code section 1355 provides that an amendment may be approved by a majority of all members.

If there are multiple classes of membership, it is not uncommon for the CC&Rs to require the approval of a super-majority of each class of members to also be required. In addition, certain types of amendments may require the approval of first mortgagees (the banks who hold the mortgages on the various units or residences in the association), or even the city. The types of amendments which require the approval of the first mortgagees are spelled out in the CC&Rs, and typically are limited to amendments which could adversely impact the security interest of the mortgagee, such as amendments changing the manner in which assessments are imposed or allocated among the various owners.

How Do We Vote?

Once the required approval percentage is determined, the Davis-Stirling Act requires that voting on the proposed amendment must be done by the double envelope secret ballot process set forth in Civil Code section 1363.03(b) (Civil Code section 5115 starting in 2014), with the votes counted at an open meeting so that the vote counting can be observed by the members. The ballot must contain the proposed amendment to be voted on by the members.

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ATTACHING JUDGMENT LIEN TO REAL ESTATE

Any lien on any real estate, consensual or judicial, must appear in the county land records to be effective. Once a judgment is "docketed" in the county land records, it constitutes a lien on all real estate owned by the debtor in that county.⁵ Once docketed, a judgment lien works very much like a mortgage. The judgment runs interest at the judgment rate. The creditor can foreclose on the judgment lien and auction the property through judicial process.

If the judgment lien has attached to real estate, the judgment creditor will often want to simply be patient and wait. The judgment continues to run interest at the judgment rate awarded or the legal rate of 9% in the state of Virginia⁶ and 10% in Maryland⁷. This is currently much higher than market savings or mortgage rates. The real estate will usually continue to appreciate in value. If there is an existing prior mortgage, the judgment debtor will continue to pay it down. As a result of all of these factors, the judgment creditor’s position normally becomes stronger with time, once the judgment has attached to real estate.

If the judgment debtor has only personal property and no real estate, the situation is very different. Personal property depreciates with time, can be damaged and can be easily hidden. Real estate is not going anywhere. One of two things will eventually happen with a judgment lien on real estate. If the debtor is financially viable, he will eventually have to pay off the judgment lien in order to sell or refinance the property. One day, the telephone will ring and someone will want to know where to send the check.

If the debtor is insolvent, a prior mortgage holder may eventually foreclose. If there is enough equity in the property, this will also result in payment to the judgment creditor. The property may have already been encumbered by one large mortgage, multiple mortgages or other judgment liens. In this case, it is possible for a judgment lien creditor to be under secured or completely unsecured. If a prior mortgage holder forecloses in this case, the judgment creditor may get nothing and the judgment lien is eliminated. The only good news is that the judgment lien creditor did not expend additional legal fees in foreclosing on the real estate.

It is expensive to enforce a judgment lien on real estate. This requires a lawsuit involving the property owner, all mortgage holders, all judgment lien holders and anyone else with an interest in the property. A commissioner in chancery or special master often hears the case and must be paid hourly for this purpose. A title search on the property is necessary and the foreclosure auction must be advertised in the newspaper. It is practically impossible to recover attorney’s fees incurred foreclosing on a judgment lien. It is also impossible to settle such a case by agreement, unless the judgment debtor is solvent.

Accordingly, it is often the best strategy for a judgment creditor to simply wait. If judgment creditors are impatient and insist on foreclosing on the judgment lien, this will result in high costs and a lower chance of recovery. Foreclosure is normally a good strategy only if the judgment debtor has the ability to pay the judgment or the judgment is large and there is ample equity in the property.

The judgment will not attach to the real estate unless it is docketed in the name of the property owner. Therefore, it is important to look ahead and know the name of the property owner before filing the lawsuit to obtain a judgment. Common problems involve, married names, trade names, middle names and initials. It is normally possible to list a defendant more than once, with variations of their names. Then the judgment will be entered in all variations of the name, and is more likely to attach to property.

In Virginia and Maryland, a judgment in the circuit court will automatically be docketed in the land records of that county.⁸ A judgment in the district court, however, is not automatically docketed. The creditor must obtain an abstract of the judgment from the district court and have the judgment docketed in the circuit court land records.

Judgment liens on real estate are also county specific. A judgment docketed in one county will not attach to real estate in another county. Again the creditor must request an abstract of the judgment from the original court of entry and then have that judgment docketed in any county in which the debtor owns real estate. Docketing a judgment is relatively cheap, so it is often a good strategy to simply have judgment docketed in multiple surrounding counties, where the debtor may own property.

If the judgment debtor owns real estate in another state, the process is similar, but somewhat more complicated and expensive. The creditor must have their judgment "domesticated" in the state where the real estate is located. Most states including Maryland and Virginia have adopted the Uniform Enforcement of Judgment Act.⁹ In these states, the domestication process is simpler, cheaper and faster. The creditor must obtain a "triple seal" abstract from the court where the judgment was entered. This abstract is then mailed to the court in the new state, along with domestication forms. The judgment debtor receives notice, normally by certified mail. The debtor has no ability to avoid judgment in the new state, except on procedural due process grounds. In other words, the debtor can show that it was not properly served in the original court or that the court lacked personal jurisdiction. The judgment debtor cannot, however, reargue the merits of the case and whether they owe the creditor money. This is normally true even in the case of a default judgment. Some states, however, have not adopted the Uniform Enforcement of Judgment Act. In such states, it is necessary to actually file a new lawsuit in the state where the real estate is located.

Docketing a judgment in the land records is normally so easy and inexpensive that a judgment creditor will normally want to have the judgment docketed in all counties in which the judgment debtor will ever possibly obtain an interest in real estate. A judgment lien normally lasts for at least a decade and can normally be extended for decades more.¹⁰ Over the passage of this time, many things can happen causing the judgment to attach to real estate.

Once a judgment is docketed in a county, if the judgment debtor ever buys real estate in that county the judgment lien will immediately attach. Real estate often passes by inheritance. If your judgment debtor’s parents live in as certain county, this is reason enough to have the judgment docketed there. If real estate is owned by tenants by the entirety, a judgment against just one tenant will not attach. If the parties’ later divorce or the non-debtor passes away, the judgment will immediately attach. Docketing a judgment is so cheap and lasts so long, it is often worthwhile to docket the judgment in any county in which the debtor, lives, may live in the future, or has relatives.

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Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z)

AT A GLANCE

Status:Final Rule

Issued Date: January 10, 2013

Published Date: January 30, 2013

Effective Date: January 10, 2014

Docket no. CFPB-2011-0008
CFPB-2012-0022

Read common consumer questions about mortgages.

The CFPB amended Regulation Z, which implements the Truth in Lending Act (TILA). Regulation Z currently prohibits a creditor from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan. The final rule implements sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for “qualified mortgages.” The final rule also implements section 1414 of the Dodd-Frank Act, which limits prepayment penalties. Finally, the final rule requires creditors to retain evidence of compliance with the rule for three years after a covered loan is consummated.

This page contains resources to help you understand the rule and its implications.

CONTENTS

1. The rule
   1. Final rules submitted to the Federal Register
   2. Effective date
   3. Breakdown of the document’s contents
2. Compliance guide and related information
   1. Compliance guide
   2. Ability-to-repay/qualified mortgage comparison chart
3. What this means for consumers
4. Proposals
   1. Concurrent proposal
   2. Related proposals

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The rule

Final rules submitted to the Federal Register

July 10, 2013:We issued a final rule amending certain provisions of the rule. It is based on a proposed rule issued in April 2013.
January 10, 2013: We issued the document containing this final rule. On January 30, 2013, the Office of the Federal Register published the final rule.
May 29, 2013: We issued a final rule amending certain provisions of the rule. It is based on a proposed rule issued in January.

EFFECTIVE DATE

This rule is effective January 10, 2014.

BREAKDOWN OF THE DOCUMENT’S CONTENTS

This document contains the following parts:

• Preamble summarizing why we are issuing the rule, our legal authority, reasoning behind the rule, responses to comments, and analysis of the benefits, costs, and impacts of the rule
• Regulatory text, which, when effective, will amend Regulation Z and can be found on page 638 in the document above
• Official interpretations of the rules which can be found on page 690 in the document above

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Compliance guide and related information

COMPLIANCE GUIDE

Read the Small Entity Compliance Guide to learn more about the rule in a plain language and FAQ format which makes the content more accessible for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff. Or watch our video on YouTube to learn more about the rule.

ABILITY-TO-REPAY/QUALIFIED MORTGAGE COMPARISON CHART

Review our comparison chart, which compares the general Ability-to-Repay requirements with the requirements for originating Qualified Mortgage loans.

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What this means for consumers

The new rule will go into effect on January 10, 2014. This summary outlines some of the ways we expect it to impact consumers who have residential mortgage loans. Download the consumer summary.

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Proposals

CONCURRENT PROPOSAL

The CFPB is proposing to amend Regulation Z, which implements the Truth in Lending Act (TILA). The Dodd-Frank Act requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for “qualified mortgages.” The Bureau is proposing certain amendments to the final rule implementing these requirements, including exemptions for certain nonprofit creditors and certain homeownership stabilization programs and an additional definition of a qualified mortgage for certain loans made and held in portfolio by small creditors. The Bureau is also seeking feedback on whether additional clarification is needed regarding the inclusion of loan originator compensation in the points and fees calculation.

View the concurrent proposal here.

You can also view, as individual documents, the concurrent proposal’s preamble, regulatory text, and official interpretations.

RELATED PROPOSALS

June 21, 2013: We issued a proposed rule with request for public comment that proposed certain amendments for several of the final mortgage rules we issued in January 2013. This proposal was published in the Federal Register on July 2, 2013. You can also review comments submitted on the electronic docket.

May 11, 2011: The Office of the Federal Register published the following proposed rule issued by the Federal Reserve Board.

June 5, 2012: The Office of the Federal Register published a a notice reopening the comment period specifically for certain new data and information. That notice, and comments received, are available online: Notice of Reopening of Comment Period to seek comment on certain new data and information submitted during or obtained after the close of the original comment period.

April 19, 2013: We issued a proposed rule with request for public comment that amends some of the final mortgage rules issued by the bureau in January of 2013. Specifically, it amends this rule and the mortgage servicing rule.

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Socially Savvy Agent Training Class 9-18-2013

Social Media Training  with Socially Savvy Sara Forkel at Coldwell Banker First Premier Realty Ontario CA.

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Proven, successful real estate prospecting strategies !

• Calling expired real estate listings (perhaps their listing price was too high or their previous agent was not of the highest quality; a word of caution - these people are likely frustrated with real estate agents and so you must work extra hard to convince them that you are hardworking and smart)

• Talking to For Sale By Owners (over 85% of people trying to sell their own homes give up and hire an agent)

• Going door-to-door

• Calling past clients

• Sending holiday cards/ small gifts with your name and contact information (my family is a big fan of magnets)

• Calling people in your social network (everybody knows someone that wants to buy or sell a house)

• Calling out-of-town owners (a lot of them may be facing frustrations with managing a home from a distance and be ready to sell)

• Sending a notice to your alumni or fraternity/sorority newsletter (there could be alumni in your area)

• Paying for the White Pages to make your name distinct, such as bold or large lettering

• Organizing neighborhood parties (what better way to build rapport with the people that live around you)

• Creating a quarterly neighborhood newspaper that includes news such as weddings, honors, college acceptances, move ins and outs, selling prices of homes, etc (of course the newsletter will include your photo and contact information)

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Proven, successful real estate prospecting strategies include:

• Calling expired real estate listings (perhaps their listing price was too high or their previous agent was not of the highest quality; a word of caution - these people are likely frustrated with real estate agents and so you must work extra hard to convince them that you are hardworking and smart)
• Talking to For Sale By Owners (over 85% of people trying to sell their own homes give up and hire an agent)
• Going door-to-door
• Calling past clients
• Sending holiday cards/ small gifts with your name and contact information (my family is a big fan of magnets)
• Calling people in your social network (everybody knows someone that wants to buy or sell a house)
• Calling out-of-town owners (a lot of them may be facing frustrations with managing a home from a distance and be ready to sell)
• Sending a notice to your alumni or fraternity/sorority newsletter (there could be alumni in your area)
• Paying for the White Pages to make your name distinct, such as bold or large lettering
• Organizing neighborhood parties (what better way to build rapport with the people that live around you)
• Creating a quarterly neighborhood newspaper that includes news such as weddings, honors, college acceptances, move ins and outs, selling prices of homes, etc (of course the newsletter will include your photo and contact information)

Why you want to refinance before fall

Considering refinancing your mortgage? If you hold off
until the fall, you might not be able to afford it.
If you've been putting off that mortgage refinance you've been thinking about, beware: you might
not be able to afford it - or even qualify - if you wait until fall.
Why? Rising interest rates, an improving economy, and impending stricter lending guidelines
mean waiting a few months to refinance a mortgage could be a costly mistake.
Here are three reasons mortgage experts say you should refinance before fall arrives.
The Government May Stop Investing In Mortgage-Backed Securities
Are you holding off on a refinance until the government confirms the economy is improving?
Doing so could make your refinance more expensive. Why?
In March 2013, Federal Reserve Chairman Ben Bernanke said the Fed may adjust the pace of
buying mortgage-backed securities according to the pace of economic recovery - which means
slowing purchases if the economy improves.
The problem is that the buying of mortgage-backed securities has been a large contributor to
rates staying low, says Dean Vlamis, VP of Residential Lending at Perl Mortgage in Chicago, IL.
In fact, rates have already jumped in recent weeks since the Federal Reserve Board starting
hinting at ending the buying program. For example, the average interest rate in May 2013 for
a 30-year fixed-rate mortgage was 3.54 percent, and jumped to 4.07 percent for June 2013,
according to Freddie Mac.
So with rates already on the rise, the time to lock in a rate is now - before they go up even more.
Tightening Credit Guidelines May Make it Difficult to Qualify
Though they won't come into effect until January 10, 2014, changes are coming to laws that
govern how strict lenders have to be when qualifying borrowers for mortgages, including
refinances. And your lender may soon start getting ready to use the new guidelines.
Amendments to the Dodd-Frank Act, a consumer protection rule that identifies mortgage
qualification criteria, will require lenders to confirm at least eight criteria through third-party
documentation, including other debts, child support and alimony payments, and income.
Because of these stricter qualifying standards, prospective homeowners may find it difficult to
get approved for a loan.
And don't be surprised if the guidelines start changing before January 10th.
"Some lenders may adopt tighter credit guidelines later this year in anticipation of new DoddFrank rules set to take effect in January 2014," says Mayfield.
So, to avoid the extra paperwork and tighter application requirements, homeowners should
refinance now - before their lenders implement these changes.
Improving House Prices
The median existing single-family home price rose a whopping 12.9 percent in the 12-month
period from May 2012 to May 2013, according to the National Association of Realtors. And
while the real estate market is improving, it may not be good news if you're planning a fall
refinance.
"For the first time in years home values are increasing," Vlamis says.  And while higher home
values give refinancers more equity in their homes, Vlamis also cautions that an improving real
estate market also means that interest rates are likely to rise even higher - so you have to act soon
to reap the benefits.
What's more, Mayfield says it can take longer for a loan refinance application to be approved
than a mortgage on a new home purchase. And with the housing market improving, refinance
applicants may be waiting in a long line to get their paperwork processed.
"Borrowers should be aware that lenders typically give priority to purchase loan applications
over refinances," says Mayfield. In fact, borrowers who want to refinance in the fall may have to
wait longer for their transactions to close as the purchase market continues to pick up, she warns.

Prospecting Plan for Expireds

Use this plan as a basis for prospecting for expireds. Add other successful strategies you have tried as you learn more about what is most effective in your market.

Locate Expireds
You should spend 30 minutes each morning, as early as possible, printing out a list of expired listings from the MLS.

• Focus on expired properties in your market area or that you feel have a strong market appeal because of price or features.
• Keep track of how long properties that you consider particularly salable have been on the market. If you learn that a listing is about to expire, offer a referral fee to the listing salesperson to let you negotiate a new listing with the seller prior to expiration. This gives you the inside track.

What other lead sources for expireds have you found helpful?

Develop a Tracking System
You often will need several weeks of contact before you can convert an expired to a listing. Once they've had a bad experience with another real estate practitioner, expireds may not be immediately receptive to a real estate practitioner. You will need to demonstrate to them why you’re different than their prior salesperson.

Your tracking system should include:

• Name, address, and phone number of expired
• Information on the property from the MLS, including previous list price, and, if possible, days on the market.
• Date that the listing expired and previous salesperson.
• Date, time, medium of every contact, and response with an expired, in chronological order—for example, phone call at 9 a.m. on 9/14, offered free comparable market analysis. If you do mailings or e-mails to expireds, be sure to include those contacts in your tracking system.

Other tracking information you’ve found valuable:

Develop a Solicitation Schedule
Although expireds are usually sold on working with a real estate salesperson, a bad experience with their previous real estate associate may make them distrustful of your promises. Keep this in mind, and focus your solicitation on providing consultative services that emphasize your past successes.

Week One
On the day the listing expires
Mail, or better yet drop off, a marketing package. If possible, do something to make your marketing package stand out from the many others an expired is likely to receive. Options include, sending it in a colorful or oversized envelope, adding a special delivery or personal/confidential stamp, or hanging it on the door in a plastic bag preprinted with you name and a drawing of a house.

Later that week
Mailings: Send a follow-up letter or postcard if you don’t get an appointment. Again, provide a supportive message, such as “Sometimes, even a great home doesn’t sell right away.” Also include a statistic noting what percentage of your listings sell in 90 days or less.

What other techniques have you used for making initial contact?

Week Two
Recheck the MLS to be sure that the home was not re-listed. Also drive by the house and look for a sign. Be alert to the possibility that a frustrated expired might become a FSBO.

Mail another marketing letter, emphasizing your success rate in selling listings in 90 days or less. Include information on any recent sales near the expired’s home, to subtly reinforce the going price range for the area.

Other techniques for maintaining contact:

Week Three

Recheck the MLS to be sure that the home has not re-listed.

Phone calls: Follow up to ensure that expired has received your service package. Use this opportunity to ask if you can come over and see the house so that you can keep your buyer clients informed of everything available in the neighborhood. Low-traffic times at open houses are a good time to make expired follow-up calls, suggests author Danielle Kennedy.

Buyer interest: If you have an appropriate customer, call expireds and ask if they would be willing for you to show the house to a buyer.

Other techniques for getting your foot in the door:

Week Four
Recheck the MLS to be sure that the home has not re-listed. Drive by and check for a yard sign.

Listing presentation: If you’ve gotten an appointment and the mood is right, present a prepared listing agreement during your visit for signature. As an alternative, promise the expireds that you will complete a marketing plan of the property within 48 hours for their review. Present the plan, then ask for the listing.

Final letter: If you’ve been unable to get an appointment, send a final letter asking expireds if their interest in selling their property has waned. Enclose a personal marketing brochure and suggest that they keep it for future reference if they later decide to list again.

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Until mortgage rates hit 10.5%, buying will still be cheaper than renting

The recent rise in mortgage rates has made buying a house a little more expensive: the increase in the 30-year fixed rate over the past month from 3.4% to 3.9% (Freddie Mac) raised the monthly payment on a $200,000 mortgage by $56, or 6%. However, because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper than renting. That means that the recent jump in rates doesn't change the rent-versus-buy math much.

Rates are likely to keep rising, but how far must rates rise before buying a home starts to look expensive relative to renting? To answer this, we updated our Rent vs. Buy analysis with the latest asking prices and rents from March, April, and May 2013. Following our standard approach, we calculated the cost of buying and renting for identical sets of properties, including maintenance, insurance, taxes, closing costs, down payment, sales proceeds, and, of course, the monthly mortgage payment on a 30-year fixed-rate loan with 20% down and monthly rent. We assume people will stay in their homes for 7 years, deduct their mortgage interest and property tax payments at the 25% tax bracket, and get modest home price appreciation (see the detailed methodology and example here). Here's what we found:

Buying remains cheaper than renting so long as mortgage rates are below 10.5%. At 3.9%, the current 30-year fixed rate according to Freddie Mac, buying is 41% cheaper than renting nationally. With a 5% mortgage rate, buying is still 34% cheaper than renting nationally. Mortgage rates would have to rise a huge amount – to 10.5% – to tip the math in favor of renting, which isn't impossible. Rates were that high throughout the 1980's, but have been consistently below 10.5% since May 1990.

Each local market, of course, has its own mortgage rate "tipping point" when renting becomes cheaper than buying a home. At 3.9%, buying is cheaper than renting in all of the 100 largest metros, which means the tipping point is above 3.9% everywhere. The tipping point is lowest in San Jose, which would tip in favor of renting if rates reach 5.2%. It's between 5% and 6% in San Francisco and Honolulu, and between 6% and 7% in New York and Orange County, CA.

Metros with the Lowest Mortgage-Rate Tipping Point
#	U.S. Metro	Mortgage rate below which buying is cheaper than renting
1	San Jose, CA	5.2%
2	San Francisco, CA	5.4%
3	Honolulu, HI	5.8%
4	New York, NY-NJ	6.8%
5	Orange County, CA	6.8%
6	Los Angeles, CA	7.5%
7	San Diego, CA	7.5%
8	Ventura County, CA	8.0%
9	Sacramento, CA	8.0%

Of course, the tipping point also depends on how long you plan to stay in your next home (we assume 7 years) and whether you itemize your deductions (we assume you do). For instance, if you don't itemize, or if the mortgage interest and property tax deductions were eliminated entirely, buying would still be 29% cheaper than renting at a mortgage rate of 3.9%, and the tipping point when renting becomes cheaper than buying would be 7.5%.

But just because buying is cheaper than renting, it doesn't mean you can buy. Lots of people who want to buy don't have the down payment or can't get a mortgage. Even people who can swing it financially might not be able to buy right away, before rates rise further, because they might not find the home they want quickly with inventory still so tight.

So if the recent increase in mortgage rates doesn't change the rent-versus-buy equation substantially, why does it matter? The main effect is to reduce the demand for refinancing. Unlike home buying, refinancing is a relatively straightforward financial decision: although refinancing has upfront costs, refinancing doesn't require finding a home, thinking hard about your lifestyle, or moving. Since rates have been low for so long, many people who were able to refinance, already have. As a result, the demand for refinancing is now dropping.

For people who haven't yet refinanced – and for people looking to buy – rising rates do make housing more expensive. Rates are now on the rise and are likely to keep rising, thanks to the strengthening economy and the Fed eventually trying less hard to keep rates low. But it will take big rate increases to turn off prospective home buyers. At today's prices and rents, rates would have to rise to levels we haven't seen in 20 years before renting is cheaper than buying a home on average across the country.