Eugene Oregon Real Estate Blog

Good Monday Morning!

Good news for a change.  Due to consumer fears over inflation, mortgage loan interest rates have decreased significantly.  For anyone thinking of purchasing a home now or in the near future, don't let this opportunity pass you by.  My bet is that our current lower mortgage rates are a temporary blip in the mortgage market.  With inflation roaring, the Fed is sure to raise rates again and with this look for mortgage rates to climb again. I would hate to guess as to how high mortgage rates might go, but unless there is a significant change in US economic policy, don't look for any further trends of mortgage rates getting more favorable.  Here is an article from "Realtor.com" that talks about the recent events in the mortgage world.

Mortgage rates have fallen to the lowest level since December 2008.

The 30-year fixed-rate mortgage averaged 5.3% for the week ending July 7, according to according to data released by Freddie Mac on Thursday. That’s down 40 basis points from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

The average rate on the 15-year fixed-rate mortgage dropped 38 basis points over the past week to 4.45%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.19%, down 31 basis points from the prior week.

“Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise,” Sam Khater, chief economist at Freddie Mac, said in a press release.

“While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown,” he added.

The drop in rates, alongside a a 5.4% drop in mortgage applications for the week ending July 1, reveals a broader cooling in the housing market.

The mortgage applications data is reported by the Mortgage Bankers Association on a weekly basis.

“Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower,” the association’s Joel Kan said on Wednesday.

Still, rates are much higher than they were a year ago. The 30-year averaged at 2.9% same time last year, Freddie Mac said.

The yield on the 10-year Treasury note rose above 2.95% during the morning trading session.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

85808 Lorane Hwy, Eugene, OR 

Price: $1,995,000    Beds: 5    Baths: 4.5    Sq Ft: 5350

Stunning Home And Property. Complete remodel with brazilian cherry hardwood floors, granite counters, new carpets, large sub-zero fridge, 6 burner commercial gas range and hood, walk in pantry, auto blinds, covered patio with creek/waterfall feature...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales both here in the Eugene and Springfield area and nationally have fallen off.  What is interesting is that home prices have not declined as of yet.  This may be temporary in our local market though as time on the market is beginning to increase and we are seeing a substantial number of price reductions on homes listed for sale.  The market is certainly softening and with that, we will typically see home prices begin to slump.  Higher mortgage interest rates and declining consumer confidence along with runaway inflation are all taking their tolls on housing.  I don't have a crystal ball, but my prediction for the remainder of the Summer housing market locally is for a slowing market with further mortgage rate increases and home prices that actually begin declining.  Time will tell.  Here is a recent article from "Realtor.com" that speaks to the changes in the national housing market.

The numbers: U.S. existing-home sales fell 3.4% to a seasonally adjusted annual rate of 5.41 million in May, the National Association of Realtors said Tuesday. Compared with May 2021, home sales were down 8.6%.

The decline was in line with the forecast of economists polled by the Wall Street Journal.

This is the fourth straight monthly decline and comes as mortgage rates have spiked and prices have risen.

Key details: The median price for an existing home rose to a record $407,600, up 14.8% from May 2021.  It is the first time above the $400,000 level.

The number of homes on the market rose 12.6% to 1.16 million units in May. This is still down 4.1% from one year ago.

Expressed in terms of the months-supply metric, there was a 2.6-month supply of homes for sale in May, up from 2.2 months in April. Before the pandemic, a 4-month supply was more the norm.

Homes remained on the market only for 16 days on average, the fastest on record.

Regionally, sales fell in all regions of the country except the Northeast.

All-cash transactions made up 25% of all transactions, down from 26% in April. About 27% of homes were sold to first-time home buyers.

Big picture: The housing sector is starting to soften, after running red-hot during the coronavirus pandemic.

Borrowing costs are surging, making home ownership more expensive for would-be buyers. Not only did the Federal Reserve tighten monetary policy, mortgage rates are also surging. As of Thursday, the average rate for a 30-year fixed-rate mortgage was 5.78%, according to Freddie Mac.

Meanwhile, construction on new homes plunged to a two-year low in the month of May, reflecting increasing wariness among homebuilders, economists said.

The next few months of data will reflect the impact of higher mortgage rates, Richard Moody, chief economist at Regions Financial Corporation, said in a preview note. He added that he expects to see “erosion in sales, and price pressures … [to] ease as listings sit on the market for longer periods of time.”

What the realtors said: “Home sales right now, after two years of gangbuster activity, is trending back down to pre-pandemic levels,” said Lawrence Yun, chief economist at the NAR. “I do anticipate further declines in home sales,” he added, as “the impact of higher mortgage rates has not been fully reflected in the data.”

Prices were still high, and homes were still selling very fast, Yun noted, despite mortgage rates rising and the overall existing-home sales number sinking. These are very “unusual” market conditions, he stressed, primarily driven by insufficient inventory.

What are they saying? “In short, while the housing market is cooling, it remains robust, at least for now,” Stephen Stanley, chief economist at Amherst Pierpont, said in a note.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3847 Boresek Ln, Eugene, OR 

Price: $599,900    Beds: 4    Baths: 3.0    Sq Ft: 2504

Wonderfully kept home in great neighborhood! All rooms are spacious with a fantastic layout. Newer roof, gas water heater, gas forced air and exterior paint, make it move in ready and available for your preference of updates to make it home! Amazing...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Last week saw mortgage interest rates rise rapidly at a rate seldom seen.  You could say that most of us saw this coming, but few people, including myself expected to see mortgage rates rise at the pace they have. The increase in mortgage rates is certainly going to have an impact and it will make home purchases tough for many buyers at this time.  Rapid change like we witnessed always has an impact, but as the dust settles the rate increase may not be as impactful as it has been initially.  The rate increase will create a situation with fewer buyers in the market, this will put immediate pressure on home prices and as sales slow and home inventories creep up from all time lows.  If mortgage rates will just stabilize at this point, home prices will fall enough over time to bring affordability back.  Also, in the works are some very attractive ARM mortgage products and possibly even a 40 year FHA loan product.  All of this will inch homebuyer purchase ability back to a reasonable level.  The wild card is the question as to whether inflation will continue at its current extreme level and force further interest rate bumps.  If this takes place, then we will have to wait and see how the housing market reacts. The following is and update from "Realtor.com."

The U.S. 30-year fixed-rate mortgage averaged 5.78% for the week ending June 16, according to data released by Freddie Mac on Thursday. That’s up 55 basis points from the previous week—one basis point is equal to one hundredth of a percentage point.

The average rate on the 15-year fixed-rate mortgage rose 43bp over the past week to 4.81%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.33%, up 21bp from the prior week.

“Mortgage rates surged as the 30-year fixed-rate mortgage moved up more than half a percentage point, marking the largest one-week increase in our survey since 1987,” Sam Khater, Freddie Mac’s chief economist, said in a press release.

“These higher rates are the result of a shift in expectations about inflation and the course of monetary policy,” he added. “Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”

The rise in mortgage rates comes a day after the Federal Reserve raised its benchmark interest rate by 75bp—the highest hike since 1994—in an attempt to address curb surging inflation.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3847 Boresek Ln, Eugene, OR 

Price: $599,900    Beds: 4    Baths: 3.0    Sq Ft: 2504

Wonderfully kept home in great neighborhood! All rooms are spacious with a fantastic layout. Newer roof, gas water heater, gas forced air and exterior paint, make it move in ready and available for your preference of updates to make it home! Amazing...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The Real Estate market in the Eugene and Springfield area is certainly beginning to show signs of change.  It is interesting though that this is still not being indicated by the home sales statistics. What I am beginning to notice though is that many homes sit on the market without selling right away now and to get showing activity the sellers have to drop their price.  I am seeing many price reductions and some multiple price reductions now.  This was unheard of just a few months ago.  I would guess that June home sales statistics are going to indicate a market shift much more clearly than the May statistics do.  One thing that is clear is that our economy, both local and national is beginning to see a steep downward trend.  Much of this trend is being caused by inflation, which is beginning to take it's toll. Higher costs of living and higher mortgage interest rates are going to have a long term negative effect on home sales.  The worst has not hit us yet, so if you are thinking of selling your home this year, I will repeat myself in saying, "DON'T WAIT!". The folowing are the home sale statistics for Lane County in the month of May 2022.

Residential Highlights

New listings (605) decreased 0.5% from the 608 listed in May 2021, and increased 23.5% from the 490 listed in April 2022.

Pending sales (484) decreased 12.6% from the 554 offers accepted in May 2021, and increased 6.8% from the 453 offers accepted in April 2022.

Closed sales (425) increased 7.9% from the 394 closings in May 2021, and increased 3.4% from the 411 closings in April 2022.

Inventory and Market Time

Inventory increased to 0.9 months in May. Total market time decreased to 23 days.

Year-To-Date Summary

Comparing the first five months of 2022 to the same period in 2021, new listings (2,413) increased 2.9%, pending sales (2,082) decreased 0.7%, and closed sales (1,826) increased 3.9%.

Average and Median Sale Prices

Comparing 2022 to 2021 through May, the average sale price has increased 17.1% from $404,100 to $473,000. In the same comparison, the median sale price has increased 15.5% from $375,000 to $433,000.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2820 S 8th Street, Lebanon, OR 

Price: $349,000    Beds: 3    Baths: 1.5    Sq Ft: 1160

Wonderfully kept home in great neighborhood! All rooms are spacious with a fantastic layout. Newer roof, gas water heater, gas forced air and exterior paint, make it move in ready and available for your preference of updates to make it home! Amazing...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

In the ever changing world of Real Estate, home prices both here in the Eugene and Springfield area and nationally continue their upward trend.  The lack of homes for sale is the primary cause for this continued home price escalation, but even with low home inventories, buyer demand is slowing quickly due to increased mortgage intereste rates, high home prices and an economy that is in serious decline with no sign of changing anytime soon.  As I have been predicting for months, home prices will begin to flatten and may even reverse and begin a downward trend soon.  This is evidenced in our local market by fewer buyers looking at homes, many price reductions for homes sitting on the market and not selling and the lack of multiple offers like we witnessed in the past months. If you are considering selling your home soon, you may have missed the red hot market we had for several years, but the market you have today and the value of your home today are much stronger than what lies ahead, so do not wait to put your home on the market thinking that our current downturn will pass anytime soon.  Here is an article from "Realtor.com" that talks about about current national Real Estate market.

The numbers: U.S. home prices rose again in March even as higher mortgage rates began to bite, leaving prices at all-time highs. The S&P CoreLogic Case-Shiller 20-city price index was up a record 21.2% year over year while the federal government’s price tracker climbed 19% in the same span.

The Case Shiller index rose 3.1% in March compared to the prior month. A separate report from the Federal Housing Finance Agency showed a 1.5% monthly increase.

The big picture: The record increases in home prices over the past few years is bound to slow with the Federal Reserve raising interest rates. The cost of a 30-year fixed mortgage has almost doubled to about 5.25% from 2.75% last fall.

Key details: The year-over-year increase in the 20-city Case Shiller prices index bested the previous record of 20.3% in February.

Phoenix once again recorded the highest rate of home-price rises in the in the country in March, according to the Case-Shiller report. Prices were up a whopping 32% from one year ago.

Dallas also posted a 30.7% increase in the past year.

The smallest increases were largely in older cities in the Northeast and Midwest such as Washington, Boston, New York, Minneapolis and Chicago.

Still, prices were up 12.9% in Washington, which had the smallest year-over-year gain.

Looking ahead: Demand is waning—evident in weakening purchase applications and home sales—in response to sharply higher mortgage rates, which should provide some relief on prices,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “Even so, for now, prices are showing little sign of abating.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3847 Boresek Ln, Eugene, OR 

Price: $619,900    Beds: 4    Baths: 3.0    Sq Ft: 2504

This light filled home is on a private drive with a 1/3 acre yard backing to Spring Creek. Spacious floor plan is perfect for extended living w/ a main level bedroom & bathroom. Great room concept w/ eating bar, granite kitchen counters & slider to...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There have not been any huge market changes in the Eugene and Springfield housing market over the past several months, but the overall market is in decline here as it is nationally.  Nationwide home inventories are an issue and are currently at slightly over two months of inventory.  In the Eugene and Springfield area those inventories of homes for sale are slightly over 2 weeks of inventory.  This situation may not change any time soon and homebuyers will continue to struggle with finding a home because of it. If there is a bright spot in all of this, homeownership remains the safest place for your money during high inflation and poor economic times. If you are wanting to purchase a home, be patient.  We are finding great homes for all of our buyers in this market.  If you are wanting to purchase a home, don't procrastonate and don't be shy about this market.  Waiting could cost you thousands of dollars. Here is an article with a national Real Estate market report from "Realtor.com".

The numbers: Existing-home sales fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April, the National Association of Realtors said Thursday. Compared with April 2021, home sales were down 5.9%.

Economists polled by the Wall Street Journal had expected an decrease to 5.64 million units.

This is the third straight monthly decline and comes as mortgage rates have spiked and prices have risen.

Key details: Scarcity of homes for sale continued to be a major factor. The total inventory of homes for sale was 1.03 million units, down 10.4% from one year ago.

Expressed in terms of the months-supply, there was a 2.2-month supply of homes for sale in April. Before the pandemic, a 4-month supply was more the norm.

The median price for an existing home was an all-time high of $391,200, up 14.8% from April 2021.

Homes remained on the market for 17 days on average.

Regionally, sales rose in the Northeast and Midwest and sank in the South and the West.

All-cash transactions made up 26% of all transactions. About 28% of homes were sold to first-time home buyers.

What NAR is saying? “I expect further declines in home sales,” said Lawrence Yun, the National Association of Realtors’ chief economist, in a discussion with reporters. Mortgage rates are rising and supply remains low., he noted. There is less incentive for homeowners to list their properties because they would lose their super-low mortgage rates. 

Market reaction: Stocks opened lower on Thursday on continued growth concerns. The yield on the 10-year Treasury note fell to 2.8% on flight-to-safety trading.

The numbers: Existing-home sales fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April, the National Association of Realtors said Thursday. Compared with April 2021, home sales were down 5.9%.

Economists polled by the Wall Street Journal had expected an decrease to 5.64 million units.

This is the third straight monthly decline and comes as mortgage rates have spiked and prices have risen.

Market reaction: Stocks opened lower on Thursday on continued growth concerns. The yield on the 10-year Treasury note fell to 2.8% on flight-to-safety trading.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3847 Boresek Ln, Eugene, OR 

Price: $629,900    Beds: 4    Baths: 3.0    Sq Ft: 2504

This light filled home is on a private drive with a 1/3 acre yard backing to Spring Creek. Spacious floor plan is perfect for extended living w/ a main level bedroom & bathroom. Great room concept w/ eating bar, granite kitchen counters & slider to...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There has not been any significant change in the Eugene/Springfield area Real Estate market over the last month. The number of homes for sale hitting the market declined at the same time that then number of homes sold increased.  This indicates that we remain in a very strong sellers market at this time.  Long term, the rising mortgage interest rates and continued increases in home values are sure to slow this market.  As I have been saying for the past several months, if you are considering the sale of your home this year, DON'T WAIT!  The market you see today will not be with us much longer. Here are the current home sales statistics for Lane County in the month of April 2022.

New listings (490) decreased 6.3% from the 523 listed in April 2021, and decreased 7.5% from the 530 listed in March 2022.

Pending sales (453) decreased 0.9% from the 457 offers accepted in April 2021, and decreased 3.8% from the 471 offers accepted in March 2022.

Closed sales (411) increased 11.1% from the 370 closings in April 2021, and increased 1.2% from the 406 closings in March 2022.

Inventory and Market Time

Inventory held steady at 0.7 months in April. Total market time decreased to 25 days.

Year-To-Date Summary

Comparing the first four months of 2022 to the same period in 2021, new listings (1,804) increased 5.2%, pending sales (1,612) increased 3.3%, and closed sales (1,389) increased 2.9%.

Average and Median Sale Prices

Comparing 2022 to 2021 through April, the average sale price has increased 17.6% from $398,800 to $469,000. In the same comparison, the median sale price has increased 15.7% from $369,000 to $427,000.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

531 T Street, Springfield, OR 

Price: $369,000    Beds: 3    Baths: 1.5    Sq Ft: 1090

This cute ranch style home has been nicely updated & is located in a convenient neighborhood close to the bus lines & shopping. Small RV parking, large 2-car garage, primary bedroom w/ large attached 1/2 bathroom, forced air heating, laminate floor...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

WHAT WOULD 5% PLUS MORTGAGE INTEREST RATES DO TO THE 2022 HOUSING MARKET?

Back when mortgage rates were 12%, people still bought and sold houses, which cost 70% less. If rates were 12% today, no one could buy a house! Certainly, a 5% interest rate will put downward pressure on prices over time, but what will it do to the market in the near term?

The Good — Higher rates likely mean leveling prices in 2022. More owners and investors might sell now that prices are peaking, creating more housing inventory. Buyers who can still afford to be in the market can make offers on houses without quite so many competing offers, and they'll have more choices. Sellers are not likely to lose much (if any) value, though they won’t continue to see sharp rises.

The Bad — Higher rates mean the pool of buyers will shift around. Some sellers could get fewer and lower offers. Buyers will ask sellers to make more repairs. Some sellers will lose gains they made in the past year. Sellers who want to cash out at the peak may be running out of time.

The Ugly — Higher rates mean many buyers will scale back on the home price they could afford when rates were lower. They may need to drop into a lower price point, which could alter their location or home style plans, or they'll need to come up with a higher down payment.

The Next Wave? Real estate markets are like an uneven, undulating wave, going up and down like a mad roller coaster. The last up-swell has been meteoric. But that doesn’t mean the next down-turn will be just as steep. It is more likely to be a slow glide that levels off somewhere between 2016 and 2022 prices in the next 5 to 10 years (barring unforeseen circumstances). All we can ever do is make the best decision in the moment.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

531 T Street, Springfield, OR 

Price: $375,000    Beds: 3    Baths: 1.5    Sq Ft: 1090

This cute ranch style home has been nicely updated & is located in a convenient neighborhood close to the bus lines & shopping. Small RV parking, large 2-car garage, primary bedroom w/ large attached 1/2 bathroom, forced air heating, laminate floor...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

If you have been looking for a home to purchase and have become frustrated with our competitive housing market, things are about to change for you.  Yes, home prices remain high and mortgage interest rates have jumped. All of this has made buying a home difficult.  One of the largest issues has been competition and the competition level is going to change.  Soon, there will be fewer people in the housing market, which will end the bidding wars and multiple offers.  True, the home you are buying will have a higher interest rate, but for many who paid well above purchase price, the true cost of the home may be less.  The market is changing quickly, so if you have been frustrated in the past, jump back into the market.  You may be very glad that you did.  The following is an article from "Realtor.com" that talks about our current national market.

The interest rate on the country’s benchmark mortgage product edged downward for the first time since early March, but that doesn’t mean the housing market will see a reprieve.

The 30-year fixed-rate mortgage averaged 5.1% for the week ending April 28, according to data released by Freddie Mac on Thursday. That’s down one basis point from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

Last week was the first time that mortgage rates had surpassed 5% since 2011. A year, the average rate on the 30-year home loan was below 3%.

The 15-year fixed-rate mortgage, meanwhile, rose two basis points to an average of 4.4% over the past week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.78%, rising three basis points from the previous week.

The moderation in mortgage rates is a reflection of movements in the market for long-term bonds. Notably, the yield on the 10-year Treasury rose above 2.9% earlier in the week before settling lower, which indicated how concerns about the COVID situation in China were weighing on investors.

“Markets are increasingly weighing that with Beijing potentially following in Shanghai’s mass quarantine footsteps, the outlook for economic growth is darkening, which may affect the U.S. economy,” said George Ratiu, manager of economic research at Realtor.com.

Despite this brief setback, mortgage rates have risen at the fastest pace in over 40 years, Freddie Mac chief economist Sam Khater said in the report. And that trend is likely to continue, given that inflation remains hot.

That will prompt the Federal Reserve to hike rates and adjust its holdings of mortgage-backed securities in the coming months, which will put pressure on mortgage rates. It’s tough to understate how disruptive the historic rise in mortgage rates over the past few months has been.

“Buyers were already constrained by low inventories, which have been driving prices higher,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “Sustained increases in mortgage rates will be an additional headwind for home sales going forward.”

The most recent data for both pending home sales and mortgage applications released Wednesday painted a picture of weakening demand from home buyers. The combination of high prices and high interest rates has made purchasing a home significantly less affordable, and it’s likely that some families have been pushed out of the home-buying market—at least for the time being.

“Buyers of a median-price home are looking at a monthly mortgage payment that is almost 50% higher than it was a year ago, adding an extra $580 to their monthly expenses,” Ratiu said. “It is not surprising that many are stepping back from the market, hoping that conditions will improve.”

For those Americans who persist, they will be reward by a less competitive market, which could give them more homes to choose from and a lower likelihood of facing a bidding war.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

531 T Street, Springfield, OR 

Price: $375,000    Beds: 3    Baths: 1.5    Sq Ft: 1090

This cute ranch style home has been nicely updated & is located in a convenient neighborhood close to the bus lines & shopping. Small RV parking, large 2-car garage, primary bedroom w/ large attached 1/2 bathroom, forced air heating, laminate floor...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Mortgage interest rates continue their upward trend and new worries arise as the inventory of homes for sale continues to be at an all time low.  This is an unusual situation as in the past when mortgage interest rates rise, home inventories increase, because of lesser demand.  Could it be that the historic low mortgage interest rates of the past years have created a situation where homeowners are going to sit tight and not jump into a market with higher rates?  Time will tell, but at the moment, don't look for home inventories to increase significantly for some time.  Here is a recent article from "Realtor.com" that talks about the current Real Estate market nationally.

Mortgage rates have increased for seven consecutive weeks, creating openings for buyers who have managed to withstand this tough housing market.

The average rate on a 30-year fixed-rate mortgage was 5.11% as of the week ending April 21, representing an increase of 11 basis points from the previous week, Freddie Mac reported Thursday. One basis point is equal to one hundredth of a percentage point, or 1% of 1%.

It’s the first time since February 2011 that the benchmark mortgage product has exceeded the 5% mark. Mortgage rates now stand more than 2 percentage points higher than they were at this time last year. A year ago, mortgage rates were below 3%.

The 15-year fixed-rate mortgage rose 21 basis points to an average of 4.38%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.75%, rising six basis points from the previous week.

The most recent home-listings data from Realtor.com showed that the number of new listings was down 13% compared to a year ago. Researchers cautioned that the downturn could be a reflection of the Easter holiday, which coincided with spring breaks for many children, so families may be holding off on putting their properties on the market.

Still, it’s a worrying sign for buyers. “The short supply of for-sale homes remains one of the biggest obstacles faced by today’s buyers, so last week’s pause in inventory improvements may understandably be disappointing news,” Danielle Hale, chief economist at Realtor.com, said in the report.

It’s too soon to declare an end to the seller’s market that has dominated in recent years. Whether home listings rebound in the coming weeks will offer hints of whether sellers are holding back. Some economists have suggested that higher mortgage rates could create a “lock-in” effect, where homeowners are disinclined to sell their current home because it would mean buying a home at a higher interest rate.

Meanwhile, many buyers are facing severe affordability constraints due to the combination of rising prices and higher interest rates. For the buyers who can withstand this tough environment, they may be able to find openings for deals.

“While springtime is typically the busiest home-buying season, the upswing in rates has caused some volatility in demand,” Sam Khater, chief economist at Freddie Mac, said in the weekly rate report. “It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1819 Hayden Bridge Rd, Springfield, OR 

Price: $395,000    Beds: 2    Baths: 1.0    Sq Ft: 1292

This cute ranch style home is in a convenient Hayden Bridge location & situated on .4 of an acre. Laminate & hardwood flooring throughout, family room w/ vaulted ceilings, gas fireplace & slider to the backyard. Bonus room in the backyard is perfect...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!