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,explainsthe 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 toFreddie Mac’sPrimary 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 toFirst American’sresearch. 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.”
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!
Author:Victoria Jackson and Mike Shuttleworth Phone: 970-846-8692 Dated: May 6th 2019 Views: 102 About Victoria Jackson and: The Steamboat Luxury Team -Vicki Jackson and Mike Shuttleworth
Vicki Jackson has been a Realtor f...
About Coldwell Banker Distinctive Properties - The Steamboat Luxury Team
COLDWELL BANKER notables:
NUMBER OF U.S. TRANSACTION SIDES: 727,415
AVERAGE U.S. SALES PRICE: $315,324 (14.2% higher than the NAR 2016 Average**)
TOTAL U.S. SALES VOLUME: $229.4 BILLION
NUMBER OF U.S. $1 MILLION+ TRANSACTION SIDES: 24,790 ($1.9 million average sales price)
INDEPENDENT CONTRACTOR SALES ASSOCIATES/REPRESENTATIVES WORLDWIDE: 88,000+
COLDWELL BANKER OFFICES WORLDWIDE: approximately 3.000
The Steamboat Luxury Team, 10th among all Coldwell Banker Teams in Colorado. from its very formation, has been unique in our approach to real estate, and how we take care of our clients. Our temperament, ethics, experience and success in residential, investment, and commercial real estate separates us from other real estate agents in the valley.. As a result of our approach, all of our associates work together to assist you with every aspect of your real estate transaction. This means that instead of just one agent, you have an entire team of professionals working for you. Local knowledge supported by America’s premier Real Estate Company
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A Lack of Inventory Continues to Impact the Housing MarketThe housing
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