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The national average 30-year fixed-rate conventional mortgage yesterday was 6.47%, the highest rate since 2008. Unfortunately, with persistent, rising inflation, the Fed will raise the overnight rate at least 75 basis points again today, with some economists encouraging 100 basis points. The mortgage market has been pricing rates in anticipation of continued Fed increases. Still, I expect mortgage rates to increase further after today's announcement. Many local lenders have rates below the national average, and programs available allow borrowers to buy down to a lower rate. If you are considering a buy-down, have your lender run the numbers to determine if the additional cost is worth it for your situation. For example, suppose you believe that rates will decline in the next several months. A buy-down might not make sense in that case because a refinance would be available before long. Conversely, if you think higher rates are here to stay, a buy-down might make perfect sense, with rates persistently higher. Unfortunately, I have no particular insight into how long rates will remain at or above the current rates.
The inventory of actively listed single-family homes in Deschutes County is up slightly to 921 homes. At the same time, pending sales dropped somewhat to seventy-three since last week. The sold volume was unchanged at sixty-eight homes. The median sale price was $727,450, with only 20 days on the market before going under contract. Contrast that with median days on the market for the active inventory of sixty-two. Well-priced, attractive homes are still moving quickly. At this time of year, inventory bounces up and down slightly before declining into winter and early spring. Still, indications point to fewer homes listed as we start 2023. Buyers have less competition, more time to consider a property in the current market, and a strong chance of securing a below-asking price offer. Considering all of these factors, if you find a home you can afford that suits your needs, it makes sense to purchase today. Waiting will likely produce fewer homes for sale as homeowners with low mortgage interest rates and considerable equity stay put. There continues to be more robust buyer demand than active sellers, keeping prices firm despite higher mortgage interest rates. Ten of the sixty-eight homes sold were priced below 500k, with twelve above $1M, showing that buyers of all stripes are still active.
Not every seller will sit out of today's market, and those looking to sell find motivated buyers and firm prices. Please let me know if you need help pricing your property. Now is a great time to regularly refer to my Market Trend Reports to track home prices weekly by navigating to that page of my website or signing up for weekly emails sent directly to you on Monday mornings.
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