If spending more time at home over the past year is making you think hard about buying a home instead of renting, you’re not alone. But as prices rise, you may be wondering if the dollars and cents add up in your favor. In most cases, it’s still more affordable to buy a home than rent. That is still true even though median home prices have increased more than average rents over the past year.

How is this possible? The answer: historically low mortgage interest rates. Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly mortgage rates dropping below 3% helped to keep the cost of rising home prices in check.

In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year. These low rates are a big factor in driving affordability and are having a notable impact on the housing market and home ownership. The coming year is totally uncertain, but owning a home still appears to be a financially-sound choice for those who can afford it.