Portland Housing Affordability 7-28-2022

Portland's housing affordability update for 7-28-2022:

As of July 28, 2022, the average 30-year fixed mortgage rate in the US climbed again to 5.3% from 2.8% a year ago. The average single family sales price for July, 2022 increased to $705,167 from $652,756 in July, 2021.

As a result, in the Portland real estate market, buyers saw a 31.5% drop in purchasing power compared to last year at this time (assuming a 5% down payment). 

Speculation continues to circulate as to whether or not rising interest rates and inflation will lead to a cooling of a housing market that's currently as sizzling as this summer's temperatures.

Whether buying or selling (or both!), we're here to help you best position yourself in this uncertain housing market. Give us a call/text or shoot us an email. We're happy to talk through your real estate related questions and goals.

The calculation of the reduction in purchasing power shown above assumes a 5% down payment, uses the average 30-year fixed rate mortgage rates reported by Freddie Mac for the weeks shown, and uses the average single-family sales prices as reported by the Regional Multiple Listing Service (Portland, OR area MLS).  No taxes or insurance figures are included.  The change in purchasing power is a scenario showing the change in purchase price given that the monthly payment in the previous time period would be the same monthly  payment in the latter, with all else being held equal.  The figures used are for illustration purposes only to convey to readers the impact changing interest rates and real estate prices have had on buyers and sellers.  We are not mortgage lenders; this is not an offer to lend money.  Please contact your mortgage lender to obtain quotes and to discuss mortgage loan programs that might be a fit for your circumstances.