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Demand & Sales Volume are Down in Portland Real Estate, but so are Mortgage Rates. What's that Mean?

Posted by Lauren Perreault on Tuesday, November 21, 2023 at 7:56:21 AM By Lauren Perreault / November 21, 2023 Comment

The Average Sale Price is Up by 2% from the previous week, Compared to last year, the average sale price is down by a mere 0.3% That's coming off of 4 weeks of being in positive territory.
Buyer demand is down vs the previous week. The number of New Purchase Agreements came in 15% Lower than the previous week. Lockbox Opens (our indicator of serious buyer activity - buyers out looking at homes with their agents) was only off last year's number by 1% - likely showing that buyers are interested in buying but affordability is still a hindrance with both high prices and mortgage rates.
After some relatively good news about inflation this week, Mortgage RatesDropped into the High 6% Range for the 30-year fixed mortgage (best case scenario). The yield on the 10-year treasury (one of our best indicators of where mortgage rates are headed) also dropped and continues to inch down. If this trend holds, we may see even lower mortgage rates next week.
Recent market trends indicate that if mortgage rates dip into the high 5's or even the low 6's, it could bring some buyers off the sidelines and back into the active market.