Good news for Boston North End condos buyers
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. This is good news for Boston North End condo buyers.
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.”
Boston North End mortgage rates
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 3.20%.
Boston condo buyers wages
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 for Boston North End Condo buyers
Low mortgage interest rates have kept Boston North End condos for sale affordable throughout the area. If you plan on purchasing a Boston North End condominium this year, act now while rates are still low.
Boston North End Condos for Sale
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Click Here: Boston North End Recent Condo Sales Stats
Click Here: Boston Real Estate For Sale in 2020