Mortgage rates keep Portland homebuyers on sidelines
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Illustration: Aïda Amer/Axios
Don't expect Portland's tight housing market to budge anytime soon.
Why it matters: Some Portland home buyers and sellers tell Axios they are reluctant to give up their favorable mortgage rates, while others are struggling to rationalize higher monthly payments once they've found a suitable home.
Driving the news: Our recent deep dive into the Portland housing market found that while pending sales and closed sales are each up slightly year over year, homeowners are still apprehensive about high mortgage rates.
By the numbers: Mortgage rates are now hovering around 6.5% — low enough to bring some people off the sidelines, but not all.
What you're saying: Some Portland homeowners with those 3% pandemic-era rates are afraid to sell and buy at a higher rate.
- Reader Will H. refinanced in 2021 with a 2.75% rate and has toured several homes that fit his family's needs but hasn't moved forward "because we want to keep our great rate and can't justify the increase in mortgage payments at this time."
- Libby R. is holding onto her 2.5% rate, too, although she's also considering leaving Multnomah County due to high property taxes and high cost of living.
Similarly, even without a mortgage, Mike E. is skeptical of putting his home on the market out of "concern that our sales price would be depressed due to purchasers facing higher payments."
- Tommy J. said he's "leery" of putting his large family home on the market in favor of a condo and "having it simply sit there because mortgage rate increases have hindered a large slice of the population interested in moving up."
- Other readers told Axios they're waiting for the Fed to lower rates before they go house hunting.
What we're watching: A drop in rates seems likely, as the Fed is scheduled to meet next week.
Yes, but: Those apprehensive of the market may be missing out on good deals, Rachel Freed, owner and principal broker of Urban Nest Realty, told Axios via email.
- "Sellers are more negotiable and buyers are getting a lot in terms of repairs and credits," she said. "When we do see rates get back down to the 5% range, I think the deals will go out the window."