Looking ahead, economic news for this week includes the Existing Home Sales report for April with an expectation of 5.00 million homes sold on a seasonally-adjusted annual basis against the March tally of 4.93 million homes sold. Also set for release on Wednesday are the Federal Open Market Committee (FOMC) Minutes for the meeting held April 30 and May 1.
Summary: Thinking of buying a home in Oregon in 2020? If so, where will mortgage rates be next year? This is important information to understand, and this article will outline where mortgage rates are now and where they’re expected to be in 2020.
Oregon mortgage rate trends have brought some interesting trends over the recent past. For months, rates have been on a steady decline, despite the odd uptick here and there.
At the end of May this year, the average rate for a 30-year home loan dipped below 4.0% since late 2017. And they’ve continued moving south since then. Here are the latest Oregon mortgage trends as of October 2019, with a forecast and outlook for 2020.
Oregon Mortgage Rate Trends: The Continued Decline
Throughout the latter part of 2017 through to late 2018, interest rates steadily climbed, reaching a peak of 4.94% for a 30-year fixed-rate mortgage in November 2018. Since then, rates reversed trends and have been on a steady decline throughout much of 2019.
The chart below shows mortgage rates trends from October 2018 to October 2019, for three common loan categories. The dip on the far right is where we are now, at the start of November. This chart also shows that current rates (as of November 1, 2019) are some of the lowest we’ve seen all year.
The day this chart was released, Freddie Mac’s economists wrote: “The outlook for a favorable resolution to the trade dispute between the U.S. and China is still unclear, introducing some volatility into financial markets and the benchmark 10-year Treasury yield. Mortgage rates are following suit but are at near historic lows, while mortgage applications to purchase a home remain higher year over year.”
Oregon home buyers who are planning to buy a home in the near future should pay close attention to these mortgage rate trends, especially since home prices are also rising across the state.
Market Shifting Toward Purchase Loans
When mortgage rates rise sharply, refinancing activity tends to drop off. And the opposite tends to happen when mortgage rates dip. The latter is what we are seeing now. Recent mortgage rate trends in Oregon have caused an increase in the number of refinance loans.
The latest Weekly Applications Survey results from the Mortgage Bankers Association showed that refinancing increased to 58% of total mortgage applications from 54.9% the week before.
Forecast for 2020: Continued Low Rates
What can we expect from Oregon mortgage rates in 2020? According to at least two expert sources, rates will likely remain where they are or go even lower over the next 12 months or so.
According to the Mortgage Bankers Association, the average rate for a 30-year home loan would average 3.9% for 2020.
Freddie Mac also believes that rates will around 3.7% all throughout 2020.
Related: Oregon mortgage loan programs
Get Pre-Approved for a Home Loan
Do you plan to buy a home in Oregon sometime soon? Do you need a loan to help finance your purchase? We can help. Sammamish Mortgage has proudly served the Pacific Northwest for more than 25 years. We offer a variety of loan options including both FHA and conventional.
If you’re ready to start shopping for a home, we can pre-approve you for a loan to make you a more competitive buyer. We can also give you a mortgage rate quote based on the type of loan you need. Have questions about your financing options? We can answer those too! Please contact our friendly, knowledgeable staff to get started.
Have Questions or Need a Mortgage Loan?
Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.