It may be a wildly overused phrase, but “tipping point” applies to the Buying vs. Renting comparison, particularly as mortgage rates start to rise. And according to a finding published recently in Trulia, we’re still a little ways away (nationally) from reaching that point, which is to say, it is still cheaper to buy than it is to rent.

That’s the short answer, at any rate. The long answer is that while the national tipping point is somewhere around 10.5%, each local market has its own marker, influenced by the cost of renting in that location and the nature of the real estate market. In San Jose, for example, it becomes cheaper to rent than to buy when the mortgage rate rises above 5.2%. But with current rates around 4%, it is safe to say that nationally it is still cheaper to buy than to rent

Trulia’s Rent vs. Buy analysis takes identical sets of properties and factors in maintenance, insurance, taxes, closing costs, down payment and sales proceeds on a 30 year fixed rate loan. It also assumes that the properties would be lived in for 7 years, with mortgage interest and property tax payments deducted.

For the full finding, head over to Trulia.

Credit: Trulia Blog