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 de- spite the low supply of houses for sale driving up prices.

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 are currently hovering around 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 a recent report.

It is expected that rising wages and lower mortgage rates will 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, now is a great time as interest rates are still low!