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Mortgage rates are rising right now, and prices in the state of Oregon are expected to climb steadily throughout 2022. So, does that mean that now is a good or bad time to buy? In this article, we’ll go over the current trends to help you decide if buying now is the right decision.
Of course, the ideal timing will depend on many factors — including personal ones. But from a market perspective, one could easily argue that now could be a good time to buy a home in Oregon. Here’s a market update to help you make this important decision.
According to the latest industry survey by Freddie Mac, the average rate for a 30-year fixed mortgage increased to 5.1% during the week of May 2, 2022. At the beginning of this year, it was at 3.22%, and over the same week in 2021, the rate was at 2.73%. So home loan rates have been increasing steadily for a while now.
This factor alone could make homebuying more expensive, unless you have the financial and credit profile to snag a lower rate.
Oregon home prices, on the other hand, have risen sharply over the last year. According to the real estate information company Zillow, the statewide median home price rose by around 19.7% over the last 12 months alone.
Looking forward, housing analysts predict that Oregon home prices will continue rising at a slightly slower pace, though still relatively strongly. Right now, the average home price in Oregon is $509,539. The general consensus is that they’ll continue rising to some degree, which is worth considering.
Related: The cost of buying in Portland
All of this begs the question: Is now the best time to buy a house in Oregon, before prices rise further?
At present, market indicators seem to suggest that housing costs in the state will continue rising throughout 2022. So those who delay their home-buying plans until later this year, or early next, could end up paying more for a house.
Of course, those are just the market factors. As a potential buyer, you should also consider your long-term plans and your lifestyle. Do you plan to stay in one place for at least the next few years? If so, buying a house might work out better than renting, on a monthly cost comparison.
You’ll also want to consider other factors, such as your financial health. Things such as your credit score, income, debt level, and down payment saved up are all important considerations to think about, as they all play a key role in not only your ability to secure a mortgage but also your ability to get a lower interest rate.
All these factors should come into play when determining if now is the right time for you to buy a home in Oregon.
Homeownership brings other advantages as well. Rents in Oregon have risen rapidly in recent years, prompting discussion of rent control and other measures. In some cases, renting can actually turn out to be more expensive than mortgage payments, depending on where exactly you live, among other factors.
Meanwhile, homeowners with fixed-rate mortgage loans usually have the same monthly payments for the life of their loans. So buying a house in Oregon could potentially give you greater control over your monthly costs, when compared to renting.
Circling back to the question at hand: Is now the best time to buy a house in Oregon? Nobody can predict future real estate or mortgage trends with total accuracy. But economists and analysts seem to agree that there is a strong likelihood that Oregon home prices will continue rising. So there’s a case to be made for buying sooner rather than later.
If you’re ready to buy a home in Oregon and need a mortgage to finance it, Sammamish Mortgage can help. We are a local lending firm serving the broader Pacific Northwest region including Washington state, Idaho, Colorado, and Oregon since 1992. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Please contact us if you have any questions or are ready to apply for a home loan.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.