If you need assistance, please call 971-208-5093

2 Trends Helping Keep Housing Affordable

Wednesday, May 01, 2019   /   by Amy McLeod

2 Trends Helping Keep Housing Affordable

housing-affordability.jpg


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!


Contact The McLeod Group Network for all your Real Estate needs! 971.208.5093 or admin@mgnrealtors.com 


By: KCM Crew


  amy mcleod, mcleod group network, homebuyers, homeowners, buying a house, first time home buyers, home sellers, home values, selling a house, home prices, housing market updates, housing affordable

The McLeod Group Network - KW Capital City
Amy McLeod
1900 Hines St SE, Suite 220
Salem, OR 97302
971-208-5093
Lighthouse Home Loans.png

Lighthouse Mortgage
Phil Gerstner
110 Wallace Rd. NW
Salem, OR 97304
503-871-4968
NMLS# 291931

Homeside Logo.jpg

Traci Benjamin
Homeside Mortgage
Sales Manager, AVP
tbenjamin@gohomeside.com
NMLS 11736
Direct: 503-843-8072
Cell: 503-932-5511

image001 (2).png

Aaron Memmott
Finance of America
Mortgage Advisor
amemmott@financeofamerica.com
NMLS# 1048117
Direct: (503) 718-9876
Cell: (503) 551-1115
Fax: (855) 639-2956

Caliber Home Loans logo.jpg

Elizabeth Smith
Caliber Home Loans
elizabeth.smith@caliberhomeloans.com
NMLS# 228191
Cell: 503-910-0415
eFAX: 844-538-4687

© 2019 Willamette Valley Multiple Listing Service. All rights reserved. The data relating to real estate for sale comes in part from the Willamette Valley Multiple Listing Service. Information contained on this site is deemed reliable but not guaranteed.