January 2024 Central Oregon Real Estate Update
The first question on the mind of anyone thinking about jumping into the Bend, Oregon real estate market is… what’s going on with interest rates?
Interest Rate Impact
The average 30-year mortgage rate in the U.S., which was below 3% until late 2021, peaked at 7.79% in late October 2023. That represented the highest mortgage rate since November 2000. The result is more costly borrowing, which can dampen housing market activity. Rates obviously affect the buyers in a big way as the higher the rate the less home you can buy, but they also impact sellers. High rates create less demand and less demand pushes down prices. So if there are less buyers in Bend because of rates, housing prices either drop or at least appreciate at a much slower rate than we are used to.
Current Rate Trend
In early January the national US interest rate was down to 6.70% across all lenders. Looking back even just 3 months that’s a drop from nearly 8.0% in October of 2023. Thankfully current data supports easing inflation and a softer job market, both are beneficial when it comes to mortgage interest rates
Trajectory
The hope is a gentle trajectory downward as we press on through the Winter and into Spring. That said, a good lender & agent can help get you into a great home with a great rate right now, we’ve even seen the occasional rate as low as 5.75%.