With Portland home prices up by double-digits in the last year, and mortgage rates hovering near historic lows, now might be a great time to refinance your home in Portland, Oregon.
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 end of last 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 two basis points (0.02%) to land at 3.44%. Results from the next survey will be published on Thursday.
The average rate for a 30-year refinance loan has fluctuated below 3.5% for 11 consecutive weeks now, as of September 9, 2016. 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.
Refinance loans currently account for more market share than purchase loans. According to a September 7 report from the Mortgage Bankers Association, the refinance share of mortgage activity rose to 64% of total loan application volume.
Low rates and 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 have risen by double digits over the last year or so. The economic research team at Zillow reports a whopping 14.7% increase from July 2015 to July 2016, more than any other metro area they looked at.
Portland was also ranked #1 in the latest release of the Case-Shiller Home Price Index, posting bigger year-over-year gains than any other city in the index. Additional gains are expected in 2017 as well.
Most homeowners in the area realize that home prices are rising. After all, these trends have generated plenty of headlines. So it’s hard to miss. But some homeowners are still surprised to discover just how much their equity has increased. 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 September 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.
- They are significantly lower than they were at the start of 2016.
- Rates have been relatively stable over the last few weeks.
Get a Rate Quote Today
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.
Sammamish Mortgage can help you determine if it makes sense to refinance your home in Portland. We’ve been helping home buyers and homeowners in the Pacific Northwest for more than 20 years.
We can help you determine what your home is worth in the current market, and how refinancing might benefit you over the long term. You can even start the process online, using our request a quote feature.
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.