As the demand for homes continues to rise in 2021, construction spending has increased, and mortgage rates remain low.
Summary: With Portland home prices relatively stable and mortgage rates hovering near historic lows, now might be a great time to refinance your home in Portland, Oregon. This article will help fill you in on refinancing and whether it’s the right time to take advantage of this mortgage program.
Are you thinking about refinancing your home? If so, you’ll be glad to know that 30-year refinance rates in Portland (and elsewhere across the country) are still hovering below 3.5%, on average. This is based on the latest national survey conducted by Freddie Mac.
Meanwhile, home prices in the area continue to rise steadily, giving homeowners more equity. Depending on your equity position and your current mortgage rate, now could be a great time to refinance your Portland home.
Portland Refinance Rates Hover Below 3.5%, Based on PMMS
At the beginning of this week, Freddie Mac announced the results of its latest Primary Mortgage Market Survey, or PMMS. According to that report, the average rate for a 30-year fixed home loan declined 0.95% to land at 3.51%.
The average rate for a 30-year refinance loan has fluctuated around 3.5% to 3.65% for the past few months, as of the first week of February 2020. This kind of rate stability doesn’t come along very often, and that’s why many Portland homeowners are now in the market to refinance their existing mortgages.
In fact, this past week’s rates were the second lowest in three years. As such, we are seeing more buyer demand and refinancing activity in Portland and statewide. Borrowers can benefit from smaller mortgage payments as a result, leaving them with more money in their pockets.
Low rates and steadily rising home values are what’s driving this activity. With greater home equity and lower rates available, many Portland homeowners are finding themselves in a good position to refinance.
Home Prices Rising Steadily, Boosting Equity Levels
Recent housing reports show that home prices in Portland, Oregon are expected to increase by 2.3% over the next year, according to the economic research team at Zillow. While they have not really been increasing too much over the past year, prices are starting to head north once again.
Most homeowners in the area realize that home prices are rising. But some homeowners are still surprised to discover just how much their equity has increased over the years. If you purchased a home in Portland, Oregon several years ago, it could be worth significantly more today. Combined with today’s low rates, this means you could be in a good position to refinance your existing loan.
Chart: 12-Month Mortgage Trends
The chart below was included with the latest survey update from Freddie Mac. It shows average mortgage rates in three of the most popular loan categories, including the 30-year fixed (blue line). This is a 12-month chart dating back to January of last year.
When looking at this chart, three things will jump out at you right away:
- Mortgage rates are lower today than they were a year ago.
- Rates have been relatively stable over the last few weeks.
Refinancing is an individualized process. Sometimes it makes sense to refinance — other times it doesn’t. You have to run the numbers to see how it will work out over the long term, and how much you could save.
Disclaimer: The average mortgage rates shown above were provided by Freddie Mac and based on their long-running survey of lenders. Actual loan rates vary based on loan features, borrower credit qualifications, and other variables. Please contact us for a quote.
Get a Rate Quote Today
Are you looking to refinance in Portland in 2020? Do you have questions about refinancing or any other mortgage program? If so, Sammamish Mortgage can help. We can help you determine what your home is worth in the current market, and how refinancing might benefit you over the long term. We currently lend in all of Washington, Oregon, Idaho, and Colorado. Get in touch with us today to have all your questions answered!