Portland Metro Real Estate - Are Sliding Mortgage Rates Kicking up Buyer Activity?

  • The Average Sale Price was Up by 2.4% vs last year's number, supporting our "just a bit higher than last year" trend.    
  • The number for new purchase agreements was way up vs the low Thanksgiving numbers we saw the previous week.  Surprisingly and for the very first time this year, the number of new purchase agreements was higher than last year at this time (by 12%).  This could be the start of a new trend if rates continue to recede.   
  • Why isn't this the Great Financial Crisis all over again? The supply of homes for sale in Portland proper for October of this year was 4848. In October of 2009, it was more than 13,000. That's about 170% more homes for buyers to choose.  This is a huge difference and one that helps illustrate why values are holding on given today's affordability challenges with high prices and higher mortgage rates.
  • Mortgage Rates Dropped to 6.5% for the 30-year fixed this week .  The yield on the 10-year treasury (one of our best indicators of where mortgage rates are headed) is up and down but trending overall mostly down - indicating that mortgage rates may continue to slide.  If rates reach the 6% mark (plus or minus) previous trends this year suggest that it may ignite buyer interest and activity in our market.     

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