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If you’re planning to buy a home in Oregon later on this year or next, consider the fact that some prices are expected to rise in the state. And since rates are still very low right now, it might be better to buy today rather than wait until later in 2022 when prices are expected to be higher.
Recently updated mortgage rate forecasts — along with a home price outlook for Oregon — suggest that home buyers could see higher costs ahead as prices are expected to rise later on in 2022 and into next year.
And while mortgage interest rates are expected to inch up throughout the coming months, they’re still expected to stay relatively low,
Collectively, they make a strong case for buying a home sooner rather than later.
It’s no secret that homes are getting more expensive in Oregon. House values have risen steadily over the last couple of years, largely the results of a skewed supply-and-demand situation. Short supply and strong demand are boosting prices across the state.
But what does the future hold? What is the outlook for Oregon home prices and mortgage rates in 2022? According to recent forecasts, home prices and mortgage rates are expected to rise over the coming months.
Let’s look at house values prices first. According to the real estate information company Zillow, the median home value for Oregon reached $486,642 as of January 2022. That was an increase of 19.7% over the same month a year earlier.
Related: Is It Better To Buy an Oregon Home With Cash Or A Mortgage?
While they expect home price increases in Oregon to slow down a bit compared to last year, they also anticipate a continued upward trend stretching later into 2022.
This outlook should come as no surprise when you consider the current supply and demand situation. Housing markets across the state of Oregon are experiencing low levels of supply, relative to demand. In some of the hottest markets, like those in and around Portland, there is currently less than a two-month supply of homes. A six-month supply is considered to be a well-balanced market.
That’s the home price outlook for Oregon, stretching into early 2021. On the mortgage side, we have two recently updated forecasts that suggest rates will remain low over the coming months.
The first mortgage rate forecast comes from Fannie Mae, which expects mortgage rates in 2022 to average out at 3.3%.
The economists at the Mortgage Bankers Association (MBA) offered a similar prediction recently. They expect the average rate for a 30-year fixed home loan to reach 4% by the end of 2022.
Granted, these are just forecasts. They are the equivalent of an educated guess. So we shouldn’t get too wrapped up in the exact numbers being projected here. The general consensus is that rates are expected to inch up slightly or remain the same between now and the end of the year. That’s the key takeaway.
Rising house prices are arguably the biggest concern for potential homebuyers in Oregon. Some aspiring buyers are already grappling with affordability issues, following the significant price increases seen over the last couple of years.
Related: Buying your first home in Oregon
A continuation of this rising trend could further reduce affordability for some home buyers across the state. So a case could be made for buying a home sooner rather than later.
Disclaimers: This article includes projections and outlooks for the Oregon real estate market through 2022. Such predictions were provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.
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.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.