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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 2021.
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 3.0% mark throughout 2021.
Here’s an updated look at the average cost to buy a house in Oregon in 2021.
According to the real estate information website Zillow, the median home value for the state of Oregon rose to $398,418 in February 2021. That was an increase of 9.2% from the same time a year earlier.
That’s a healthy gain and 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.
Further, the economists and analysts at Zillow expect home prices in Oregon to continue rising throughout 2021.
Related: Prices in Oregon expected to rise
Mortgage rates, on the other hand, are actually lower now than they were the same time last year. During the week of February 10, 2021, the average rate for a 30-year fixed mortgage loan is 2.73%, while the rate for the same week last year in 2020 was 3.47%. So we have seen a steady decline in mortgage rates. With that being said, Fannie Mae expects the 30-year fixed rate to average around 3.0% in 2021.
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.
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 $398,418, a 10% down payment, and the average mortgage rate at the time of publication (2.73%), we end up with a monthly mortgage payment of around $1,457.14.
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 2021.
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 2021 as well. Economists are also predicting that home prices will continue rising over the next 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. And when it comes time to take out a mortgage to finance this purchase, be sure to team up with a seasoned mortgage company in Oregon.
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.
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 since 1992, 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.
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