Single-family homes for sale in Deschutes County grew slightly this week to 344, up from 341 last week. Mortgage interest rates dropped slightly to 2.96%, down from 2.99% last week. The lowest mortgage interest rates ever were recorded on January 7, 2021, when a 30 year fixed rate mortgage was 2.65%. Considering that the average mortgage interest rate for this week in June over the last four years was 3.89%, it is apparent mortgage rates are not slowing down housing demand.
The chart below shows the trend in sales, with the corresponding mortgage interest rates for the first two weeks of June over the last five years. Low mortgage interest rates increase buying power, and multiple offers bid up selling prices. Determining how much prices have increased due to low mortgage rates is difficult, although the reduced transactions below 600k are a reasonable indicator. The increase in sales is significant in the higher price points, but most homes sold in Deschutes County are between 300-900k. Conventional loan limits in Deschutes County are $548,250, and jumbo mortgage rates are also at historic lows.
Compared to other mountain towns, relative affordability in Central Oregon, combined with our incredible community, continues to drive demand. While prices may have plateaued, I do not expect a retreat anytime soon. Lumber prices backed off this week but are still considerably higher than a year ago. All indications point to a more typical real estate market this summer than last, albeit with low inventory and high demand!
