Summary: The average cost of buying a house in Oregon has increased steadily over the last couple of years, largely due to rising home values. Mortgage rates, however, are on the decline, and are expected to stay low throughout 2020.
The average cost of buying a house in Oregon has increased steadily over the last few years, largely due to rising home values. But mortgage rates, on the other hand, have seen an opposite trend of decreasing over recent months,. In fact, they are currently hovering near historic lows and are expected to stay under the 4.0% mark throughout 2020.
Here’s an updated look at the average cost to buy a house in Oregon in 2020.
Average Cost of Buying a House in Oregon, Updated
According to the real estate information website Zillow, the median home value for the state of Oregon rose to $366,552 in February 2020. That was an increase of 2.8% from the same time a year earlier.
That’s a modest gain, but it is still pointing to an ongoing upward trend in prices. So the average cost of buying a house in Oregon is significantly higher today than it was a year ago. And it is expected to rise further.
The economists and analysts at Zillow expect home prices in Oregon to continue rising throughout 2020. Their 12-month projection between now and February 2021 calls for a 3.8% increase in house values statewide.
Related: Prices in Oregon expected to rise
Mortgage Rates Low and Fairly Stable
Mortgage rates, on the other hand, are actually lower now than they were the same time last year. During the week of February 28, 2019, the average rate for a 30-year fixed mortgage loan was around 4.35%, while the rate for the same week this year in 2020 is 3.45%. So we have seen a steady decline in mortgage rates. With that being said, Fannie Mae expects the 30-year fixed rate to average 3.8% in 2020.
Because the buyer’s closing costs are probably related to the sale price, they too could rise between now and next year. On average, home buyers in Oregon pay around 2% to 4% of the sale price in the form of closing costs. These are the various fees and charges that can accumulate during a typical real estate transaction. They include mortgage origination fees, credit reporting fees, government recording fees and more. You can learn more about closing costs here.
Average Mortgage Payment as of Winter 2020
We can get a sense of the average monthly mortgage payment in Oregon by using the current median home price mentioned earlier, along with average mortgage rates.
Using the statewide median home value of $366,552, a 10% down payment, and the average mortgage rate at the time of publication (3.45%), we end up with a monthly mortgage payment of around $1,467.69.
For the sake of simplicity, this calculation leaves out property taxes and other variables. But it gives you some idea as to the average monthly mortgage payment in Oregon, as of winter 2020.
Related: What you need to get a mortgage
The bottom line to all of this is that the average cost of buying a home in Oregon has increased over the last year, and is expected to continue along an upward trend in 2020 as well. Economists are predicting that home prices will continue rising at a slightly faster pace compared to the past 12 months.
It makes a strong case for buying a home sooner rather than later. Those who postpone their purchases could encounter higher housing costs.
Disclaimer: This article uses data compiled from a variety of sources to give home buyers a sense of the average buying costs in Oregon. Figures were reported by third parties not associated with our company. They are deemed reliable but not guaranteed.
Need a Mortgage in Oregon?
Do you plan to buy a home in Oregon sometime soon? Do you need mortgage financing to complete your purchase? We can help. Sammamish Mortgage has been helping borrowers across the Pacific Northwest for about 28 years, including Washington State, Colorado, Idaho, and Oregon. We offer many different mortgage programs with flexible qualification requirements to suit the needs of each borrower. Contact us today if you have questions about applying for a mortgage.