• Skip to main content
  • Skip to primary sidebar
  • Home
  • Ask A Question
  • Find Your Next Home
Real Estate Questions and Answers

Real Estate Questions and Answers

2 Trends Helping Keep Housing Affordable

May 1, 2019 by Rick Landuyt

2 Trends Helping Keep Housing Affordable | Simplifying The Market

Two positive trends have started to emerge that impact the 2019 Spring Housing Market. Mortgage interest rates for a 30-year fixed rate loan have dropped to new lows, right as reports show that wages have increased at their highest rate in decades!

These two factors have helped keep housing affordable despite low supply of houses for sale driving up prices. First American’s Chief Economist, Mark Fleming, explains the impact,

“Ongoing supply shortages remain the main driver of the performance gap as the housing market continues to face an inventory impasse – you can’t buy what’s not for sale.

 However, an unexpected affordability surge, driven primarily by lower-than-anticipated mortgage rates, rising wages and favorable demographics, has boosted housing demand.”

Mortgage interest rates had been on the rise for most of 2018 before reaching their peak in November at 4.94%. According to Freddie Mac’s Primary Mortgage Market Survey, interest rates last week came in at 4.20%.

Average hourly earnings grew at an annual rate of 3.2% in March, up substantially from the 2.3% average pace seen over the last 10 years.

These two factors contributed nearly $6,000 worth of additional house-buying power for median households from February to March 2019, according to First American’s research. Fleming is positive about the prolonged impact of lower rates and higher wages.

“We expect rising wages and lower mortgage rates to continue through the spring, boosting housing demand and spurring home sales.”

Bottom Line

Low mortgage interest rates have kept housing affordable throughout the country. If you plan on purchasing a home this year, act now while rates are still low!

 

Filed Under: First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Interest Rates, Move-Up Buyers

Primary Sidebar

Ask Your Real Estate Question

Recent Posts

  • What Does the Rest of the Year Hold for Home Prices?
  • Is the Shifting Market a Challenge or an Opportunity for Homebuyers?
  • Selling Your House? Your Asking Price Matters More Now Than Ever
  • Why the Forbearance Program Changed the Housing Market
  • Housing Market Forecast for the Rest of 2022 [INFOGRAPHIC]

Categories

  • Baby Boomers
  • Buying Myths
  • Demographics
  • Distressed Properties
  • Down Payments
  • First Time Home Buyers
  • For Agents
  • For Buyers
  • For Sellers
  • Foreclosures
  • FSBOs
  • Gen Z
  • Generation X
  • Holidays
  • Housing Market Updates
  • Infographics
  • Interest Rates
  • Luxury Market
  • Millennials
  • Move-Up Buyers
  • New Construction
  • Pricing
  • Questions and Answers
  • Rent vs. Buy
  • Selling Myths
  • Senior Market
  • Short Sales
  • Time-sensitive
  • Uncategorized
COLDWELL BANKER PROFESSIONALS - RICK LANDUYT - 67395 MAIN ST, RICHMOND, MI 48062 - (586) 727-2741