Wage Growth Reached A Higher Point Than Mortgage Rates In October 2019
For the first time since 1972, the U.S. wage growth has surpassed the average 30-year fixed mortgage rate.
"Average hourly earnings for production and nonsupervisory employees -- who comprise more than 80% of the U.S. private-sector workforce -- rose 3.8% from a year earlier in October, according to Labor Department data published Friday," according to Bloomberg.
That's a .1% difference from the average 30-year fixed mortgage rate. The milestone can be attributed to the Federal Reserves ease on rates that were closed to 4.9% prior to Fed cuts.
"If those trends continue, the combination will limit the debt burden for American households by keeping the share of would-be homebuyers’ wages being spent on interest payments under control," according to Bloomberg.
"The Federal Reserve’s three rate cuts this year — undertaken for other reasons — have allowed wage growth to finally catch up as the job market continues to improve."
To learn more about how the U.S. wage growth rate caught up to the average 30-year fixed mortgage rate, click on the image above.
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