Mortgage rates spike, causing slowdown in applications

The Houston real estate market may get a renewed boost this year, as workers in the area are earning more, which could give them the financial flexibility to purchase a home.

Data from the Department of Labor shows that during 2010, the cost of overall wages and salaries in the Houston-Baytown-Huntsville metro area grew by 3.4 percent, while total compensation grew by 3.1 percent.

Both of those numbers were above the national average, and the growth of wages and salaries in the region was the most of any of the 15 metro areas included in the national report. By contrast, salaries in Dallas - the second-best in the South region - grew just 2.5 percent over the same time period, while wages in Miami grew by just 0.1 percent.

For many Houston residents, buying a home may be much more affordable than continuing to rent. A recent analysis by the website Trulia found that it would cost just 13 years' rent in the city to buy a median-priced home - making Houston homes some of the most affordable in the country when compared to renting.