Eugene Oregon Real Estate Blog

Good Monday Morning!

Right now in the Real Estate world any news of mortgage interest rate relief is good news. Last week was good news as mortgage rates dipped slightly.  Even though this dip was not huge it helps and it also put the stop on the several week trend of rising rates.

Here is a recent article from "Realtor.com" that describes the recent mortgage rate decline.

The numbers: Mortgage rates took a breather from its march towards 7% this week, as the economic outlook looks uncertain.

The 30-year fixed-rate mortgage averaged 6.66% as of Oct. 6, according to data released by Freddie Mac on Thursday.

That’s down 4 basis points from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

last week, the 30-year was at 6.7%.

It’s worth noting that Mortgage News Daily, which follows day-to-day movement in mortgage rates, is noting that the 30-year is at 6.95%.

Though rates have come down as per Freddie Mac — albeit ever so slightly — overall, mortgage rates are still high relative to where they were a year ago.

Last year, the 30-year was averaging at 2.99%.

“Rates remain quite high compared to just one year ago,” Sam Khater, chief economist at Freddie Mac, said in a statement, “meaning housing continues to be expensive for potential home buyers.”

This October, the average rate on the 15-year mortgage also dropped slightly to 5.9%.

The adjustable-rate mortgage, or ARM, averaged 5.36%, up from the prior week. Interest in ARMs is rising, with the share of ARMs as a percentage of all mortgage applications for purchases of a home rising to 12%, the Mortgage Bankers Association said. That’s the highest level it’s reached since 2008.

Overall, mortgage applications fell significantly in the latest week, as buyers pulled back amid higher rates, and also due to the hurricane-induced closures in Florida.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5427 Royal Ave, Eugene, OR 

Price: $1,500,000    Beds: 4    Baths: 3.0    SqFt: 3218

One of a kind property. This close-in home and property has an 80' X 120' riding arena with 8 stalls, 24' X 40' small barn and tac room with 3 stalls, 40' X 100' barn with 10 stalls and 600 sq.ft. apartment. Arena and apartment building are Butler b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

We are experiencing some very turbulent economic times and at this point, there is little relief in site.  Yes, this is effecting the national housing market in a big way.  Mortgage interest rates are up from a long run of historic low rates, homes sales are sagging and home prices are beginning to slip. As I have mentioned previously, when one door closes, two more open.  For home buyers, there are many more homes to choose from now than earlier this year, the days of bidding wars are long gone and the price a buyer pays for a home now may compensate for the increased mortgage interest rates.  Also, look for mortgage loan programs to start becoming available that are geared towards getting buyers into houses with the new higher rates.  Over the next few months you may see some attractive ARM loans, 40 year loan terms and also some rewards for those buyers with great credit or even good payment history.  One loan that is now available is an FHA loan that rewards those who have been renters for having a great rental history. The following article speaks about this new mortgage loan program through FHA.

The Federal Housing Administration published a letter to lenders on Tuesday urging them to consider including a borrower’s positive rental payment history when applying for FHA-insured financing. The move is believed to be a boost for first-time home buyers to help to improve their credit scores when applying for a mortgage, the memo reads. 

“If you’re regularly paying your rent on time, that’s a good indication you will also pay your mortgage on time,” says Julia Gordon, Federal Housing commissioner. “We hope that adding this positive factor to all of the characteristics currently considered in an FHA credit evaluation will increase access to affordable FHA-insured mortgages for first-time home buyers.” 

The FHA will consider positive rental payment history as the on-time payment of all rental payments over the last 12 months. Lenders originating purchase mortgages for FHA insurance will be required to obtain verification of the borrower’s timely rental payments and indicate it on their TOTAL Mortgage Scorecard, which the FHA uses to evaluate borrower credit history and mortgage application information when underwriting loans. 

“This change makes FHA requirements more flexible and can help remove barriers to homeownership, particularly for those with nontraditional credit or thin credit files,” says Julienne Joseph, deputy assistant secretary for single-family housing.

The FHA’s move follows on the heels of an announcement by Experian, one of the main credit bureaus, earlier this month that its Experian Boost program would offer a way for consumers to add qualifying, positive residential rental paymentsdirectly to their credit file. Experian’s research has determined that 66% of its consumers will see an instant increase in their FICO score by factoring in on-time rental payment data. The credit bureau said consumers who would see the biggest improvement—of about 14 points—are those with thin credit files or low FICO scores. 

Also, Fannie Mae launched this week a “Multifamily Positive Rent Payment Reporting” pilot program, which is aimed at helping renters build their credit histories and boost their credit score. The program allows eligible property owners to share on-time rent payment data through a system to the three major credit bureau’s so it can be included in the renter’s credit profile. It’s the latest of several initiatives from the government-sponsored enterprise to get rental payment history included in the underwriting process.

In 2021, Freddie Mac announced a new program to help renters build up their credit profiles and help make them more creditworthy. The initiative provides a means for owners or managers of multifamily properties to report on-time rental payments to the three major credit bureaus. 

The move was aimed at helping a portion of the more than 45 million U.S. adults who have no credit score.

If you are wanting to sell your home in this current market, things may not be as bad a you think.  This is especially true if you are selling to purchase another home.  Please get in touch if you are wanting to sell your home.  We can give you a complete evaluation in regards to your homes value and and furnish you with details as to what selling your home in todays market looks like.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4781 Treewood Ct, Florence, OR 

Price: $515,000    Beds: 2    Baths: 2.0    SqFt: 1552

Cozy coast retreat located minutes from Harbor Vista Park! Freshly painted & updated ranch style home with luxury vinyl flooring. Two master suites with private baths. Perfect for owner occupied or a coast investment property. Large sunroom leads to a fenced backyard with raised garden beds, small shop with electrical and tool shed. Kitchen has stainless steel appliances...View this property >> 

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Good Monday Morning!

Yes, mortgage rates have increased over the past several months after a long run at record low levels.  This has certainly slowed our local housing  market in the Eugene and Springfield area.  With every closed door another one opens.  This is actually a great time to think about purchasing a home and here is why: The inventory of homes for sale has increased.  This means that there are far more homes available to choose from than previously.  There are not as many buyers in the market right now.  This means that the competitive market of the past is long gone and you will most likely not have to get into a bidding war. Home prices are declining and are much softer than earlier this year.  The homes you are looking at are most likely listed a lower price than even several months ago.  You may also be able to negotiate a better price than the listed price.  This is something that you could not do earlier this year or for the past several years.  Because the market is softer, you will not have to make concessions to a seller with your offer.  Up until recently, most buyers were waiving repairs, inspections or even the appraisal in order to have the opportunity of having the seller look at their offer.  Lastly, mortgage rates have increased, but they remain below the 30 year average.  Chances are that rates will increase even more in the coming months, making this a golden opportunity for a better priced home at a mortgage rate that remains lower than the 30 year average.  Remember, rents are up as well as mortgage rates and rents will continue to soar for the foreseeable future.  You are always going to be making a mortgage payment.  It’s your choice whether that mortgage payment you make is for yourself or for your landlord.  Here is a recent article from “Realtor.com”that speaks to our current mortgage loan situation.

Mortgage rates rose for the fifth consecutive week, reaching yet again the highest level since the financial crisis.

The average rate on a 30-year fixed mortgage climbed to 6.29%, according to a survey of lenders released Thursday by Freddie Mac. It was the second week in a row that rates topped 6%. The last time rates were this high was October 2008, when the U.S. was deep in recession.

The sharp rise is another product of the Federal Reserve’s campaign to curb decades-high inflation. On Wednesday, the central bank raised interest rates for the fifth time this year. Officials indicated that more large increases are on the way even if such moves risk a recession.

A year ago, mortgage rates were 2.88%.

Higher rates affect virtually every corner of the economy, but their effect on housing is particularly acute since higher rates can easily add hundreds of dollars to a buyer’s monthly mortgage payments.

Take a borrower who buys a $500,000 house with a 20% down payment. With a 2.88% mortgage, that person can expect to pay about $200,000 in interest over 30 years for their $400,000 loan, according to a mortgage calculator by Bankrate.com. With a 6.29% mortgage, the borrower could pay more than $490,000 in interest.

Higher rates have cooled housing significantly. Though home prices continue to notch year-over-year gains, prices are falling month-over-month. Many would-be buyers are getting priced out of homeownership. Many homeowners feel stuck in place, since selling would mean taking on a mortgage with a significantly higher rate.

The national median mortgage payment was $1,839 in August, up 33% from the start of the year, the Mortgage Bankers Association said Thursday.

Mortgage rates don’t move automatically when the Fed raises its rate. They typically rise or fall in tandem with the benchmark 10-year Treasury yield, but that yield is heavily influenced by expectations for Fed rates. The 10-year yield this week hit its highest level since 2011.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3100 Emerald Place, Eugene, OR 

Price: $575,000    Beds: 3    Baths: 2.0    SqFt: 2006

Mid Century Modern, architecturally-designed home in a great SE Eugene location! It has a fantastic spacious floorpan and a large beautiful patio to relax or entertain in while you enjoy expansive views of the City and surrounding hills. The large master bedroom features a walk in closet, ensuite and doors to a courtyard patio. You won't find another home like this one...View this property >> 

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Good Monday Morning!

The statistics are in for home sales in Lane County for August of 2022.  As you can see, there was not significant change from July of 2022.  Remember, the sales numbers are reflective of the market 4-6 weeks prior to the close of escrow, which is what is being reported with these numbers.  The suprising fact to me was that the number of homes that are actively for sale declined.  This is not typical when the number of days it takes a home to sell increases.  When we see September home sales numbers 30 days from now, they may be more of an indication of where our home market is headed.  Nationally, home sales are dropping and home values are also in decline.  Americans lost 6.1 trillion dollars of wealth last month and most of this is the result of real estate values declining.  Most Americans wealth is tied to real estate. We are certainly transitioning from an extremely strong sellers market to a buyers market.  The next couple of months will give us a look at how deep that transition goes. Here are the home sales numbers for August 2022 in Lane County, Oregon.

Residential Highlights

New listings (497) decreased 17.2% from the 600 listed in August 2021, and decreased 13.0% from the 571 listed in July 2022.

Pending sales (458) decreased 16.6% from the 549 offers accepted in August 2021, and increased 1.3% from the 452 offers accepted in July 2022.

Closed sales (464) decreased 4.5% from the 486 closings in August 2021, and increased 17.2% from the 396 closings in July 2022.

Inventory and Market Time

Inventory decreased to 1.2 months in August. Total market time increased to 26 days.

Year-To-Date Summary

Comparing the first eight months of 2022 to the same period in 2021, new listings (4,137) decreased 2.3%, pending sales (3,368) decreased 7.1%, and closed sales (3,196) decreased 3.3%.

Average and Median Sale Prices

Comparing 2022 to 2021 through August, the average sale price has increased 11.7% from $425,900 to $475,900. In the same comparison, the median sale price has increased 11.4% from $392,000 to $436,800.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

375 72nd Place, Springfield, OR 

Price: $425,000    Beds: 3    Baths: 2.0    SqFt: 1656

Beautiful one level home, cul de sac location on large beautifully landscaped lot. Newer roof and heat pump. Spacious living room with fireplace, dining area, family room, covered patio and huge fenced backyard. This home has been extremely well mai...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

I am talking to would be home buyers daily who are fearful of pulling the trigger on a home purchase.  Yes, mortgage interest rates are up, but at the same time, home prices in many price ranges are soft.  The competitive housing market that we had earlier this year is gone.  Each day, I see a multitude of price reductions being entered into MLS.  This is a strong indicaton of a softening housing market.  I beleive that we are on the edge of even higher mortgage rates, but right now your ability to purchase a home at a lower price than ealier in the year is extremely likley.  In fact the price you may pay for a home today may completely offset any increase in mortgage rates.  The other thing that I would like to mention is the fact that inflation is roaring and may not subside for some time.  Where is the best place to have your money during times of high inflation, it's homes and land.  Your investment into a home for your private residence, vacation home or even better an income producing property, could be the wisest investment you make right now.  Real Estate is an extemely safe investment long term.  Don't listen to the hype that this is not the time to purchase real estate.  Listening to this could cost you dearly!

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5427 Royal Ave, Eugene, OR 

Price: $1,500,000    Beds: 4    Baths: 3.0    SqFt: 3218

One of a kind property. This close-in home and property has an 80' X 120' riding arena with 8 stalls, 24' X 40' small barn and tac room with 3 stalls, 40' X 100' barn with 10 stalls and 600 sq.ft. apartment. Arena and apartment building are Butler b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning and Happy Labor Day!

Inflation numbers continue to plague our national economy and this is certainly having an effect on the housing market. Fears of the Fed taking measures to slow inflation with higher interest rates has slowed consumer confidence and this along with mortgage interest rates rising again, home sales have slowed both locally and nationally.

If you are considering the purchase of a home, don't let this current market scare you off. If you look at the 30 year average of 8 1/2% for mortgage interest rates, today's rates still look very favorable.  The inventory of homes on the market is much more favorable than it was back in the Spring and home buyers no longer have to get into bidding wars with other buyers.  The truth is that for home buyers, right now is a much more favorable market that what they faced earlier this year.  The time for buyers to jump in is now.  It may be a while before we see a market for home buyers like this again.  Here is a recent report on the national housing market from "Realtor.com."

The 30-year fixed-rate mortgage averaged 5.66% as of Sept. 1, according to data released Thursday by Freddie Mac. That’s up 11 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

The 30-year is at the highest level since June, when rates hit 5.81% the week of June 23.

The average rate on the 15-year fixed-rate mortgage rose 13 basis points over the past week to 4.98%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.51%, up 15 basis points from the prior week.

“The market’s renewed perception of a more aggressive monetary-policy stance has driven mortgage rates up to almost double what they were a year ago,” Sam Khater, chief economist at Freddie Mac, said in a statement.

And the increase in rates comes at a “particularly vulnerable time for the housing market,” he added, “as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration.”

So far, buyers — spooked by higher rates and economic uncertainty — continue to pull back, based on mortgage application data.

Meanwhile, sellers are having a much more difficult time. According to Realtor.com’s August report, listings are spending more days on the market, and are also taking price cuts. The number of homes available for sale is also increasing.

The National Association of Realtors expects home-price appreciation to slow to 5% by the end of this year and into 2023, down from 14.2% in the second quarter.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3255 Strathmore Pl, Eugene, OR 

Price: $575,000    Beds: 4    Baths: 2.0    SqFt: 1892

Beautifully maintained home on large lot in desirable South Eugene! Fabulous fenced yard with two she/ he sheds(both have power). Rooms are spacious and the home is move in ready! You won't want to miss this!...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

It is very easy to see that we are in the midst of a major change in the housing market, both here locally in the Eugene and Springfield area and across the nation. You can see more "For Sale" signs up, the signs remaining up for much longer, price reductions on homes for sale and just less buyer interest. Homes that would have gone on the market two months ago and had multiple offers and sold in just a few days are now sitting. This is the beginning of what I beleive will be a major shift in the national housing market. A shift that is now just in it's infancy. Many economists predict that in certain markets, home prices could decline as mcuh as 20%. Why is this happening when we have a huge shortage of houses both locally and nationally. Inflation is the primary culprit. With inflation rates of over 8% for months now, everything is costing more. The Feds only tool against rising inflation is to raise interest rates. This has a direct effect of mortgage rates.  In the Spring of this year, we saw mortgage interest rates as low as 2.5%. Now mortgage rates have doubled that. You take higher mortgage rates and throw that into a housing market with inflated home prices and housing affordability suddenly goes out the window. All is not lost yet. Inflation needs to be brought under control. If this happens, then we will see the stabilizing of the housing market with home affordability returning. The problem is that if the government continues to put the cap on energy production, continues out of control spending and continues its current economic policies, inflation will continue to roar and the national housing market will continue its downward trend. The next several months may tell the story as to where we are heading as a nation with our housing market.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5427 Royal Ave, Eugene, OR 

Price: $1,500,000    Beds: 4    Baths: 3.0    SqFt: 3218

One of a kind property. This close-in home and property has an 80' X 120' riding arena with 8 stalls, 24' X 40' small barn and tac room with 3 stalls, 40' X 100' barn with 10 stalls and 600 sq.ft. apartment. Arena and apartment building are Butler b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The Real Estate market here in the Eugene and Springfield area and across the country continues to shift.  In most market areas home sale are slumping and inventories are rising.  Mortgage rates seem to be fairly stable at this time and even though they are higher than this same time period a year ago, they remain well below the 30 year average rate.  I think that this is a golden opportinity for home buyers.  The days of multiple offers and low inventory of homes for sale has certainly come to and end.  The time to act is now as inflation continues to roar and mortgage rate hikes are a certainty in future months.  Here is an article from "Realtor.com" that talks about our current national housing market.

The numbers: U.S. existing-home sales fell 5.9% to a seasonally adjusted annual rate of 4.81 million in July, the National Association of Realtors said Wednesday.

This is the sixth straight monthly decline.

The sales number matched what economists polled by the Wall Street Journal were expecting.

his is the weakest level of sales since May 2020 at the end of the recession caused by the pandemic. Excluding the recession, the level of sales activity was lowest since November 2015.

Compared with July 2021, home sales were down 20.2%.

Key details: Prices moderated in July. The median price for an existing home fell to $403,800, up 10.8% from July 2021. That was the slowest annual pace of increase since July 2020.

The number of homes on the market rose 4.8% to 1.31 million units in July.

Expressed in terms of the months-supply metric, there was a 3.3-month supply of homes for sale in July, up from 3 months in June. Before the pandemic, a four-month supply was more the norm.

It is still a tight market. Homes remained on the market only for 14 days on average. Pre-pandemic, the average time for homes to remain on the market was a month.

Sales declined across all regions of the country. The West saw a “dramatic decline” in sales from a year ago of 30%.

All-cash transactions made up 24% of all transactions, down slightly from June. About 29% of homes were sold to first-time home buyers, down slightly from 30% in the prior month.

Big picture: The decline in home sales comes as mortgage rates have doubled and recession fears spook buyers.

Perhaps a silver lining is the pendulum is slowly swinging to the prospective home buyer’s side.

Sellers are upping incentives to entice apprehensive buyers, worried about a looming recession.

To be clear, homes are still expensive. Borrowing costs are elevated, with the average contract rate for a 30-year fixed-rate mortgage at 5.45%, according to the Mortgage Bankers Association. And even though Yun said last month that he expects price appreciation to slow to 5% by the end of the year, prices are still out of reach for many first-time buyers.

Builders are calling the current situation a “housing recession,” and new construction of homes has started to fall. Builders expressed gloominess in an August survey, signaling that construction will continue to slow. Both will likely put pressure on the pipeline of new homes hitting the market in the future.

What the realtors said: In the month of June, “affordability has plunged to the lowest level in 30 years,” Lawrence Yun, chief economist at the NAR, said during a call.

“We are in a housing recession,” Yun said, only “in terms of sales and housing starts.” homeowners are still in a really “comfortable” position as home price growth continues.

He added that he believes it is “possible that mortgage rates have already peaked” which would provide some relief for prospective buyers.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

375 72nd Place, Springfield, OR 

Price: $450,000    Beds: 3    Baths: 2.0    SqFt: 1656

Beautiful one level home, cul de sac location on large beautifully landscaped lot. Newer roof and heat pump. Spacious living room with fireplace, dining area, family room, covered patio and huge fenced backyard. This home has been extremely well mai...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The numbers are in for home sales in the Eugene and Springfield area for July of 2022.  The numbers show that the market is beginning to show some real signs of change.  The number of new home listings is down, the number of new home sales is down, time on the market in increasing and the inventory of homes for sale is creeping upwards.  The interesting thing is that even with the home market slow down, home prices continue to rise.  This is caused by a situation called stagflation, where home price inflation hits as the market slows.  Right now the overall economy of our area and the nation is having the largest effect on our housing market as mortgage interest rates have actually relaxed some over the past several weeks.  All indications are that the slowing trend in the housing market will continue both nationally and locally.  Remember though, with each different kind of market, some opportunities disapear as new ones come into play.  Here is the report on home sales in Lane County for July of 2022.

New listings (571) decreased 6.7% from the 612 listed in July 2021, and decreased 9.7% from the 632 listed in June 2022.

Pending sales (452) decreased 12.7% from the 518 offers accepted in July 2021, and increased 2.7% from the 440 offers accepted in June 2022.

Closed sales (396) decreased 20.6% from the 499 closings in July 2021, and decreased 14.8% from the 465 closings in June 2022.

Inventory and Market Time

Inventory increased to 1.6 months in July. Total market time increased to 22 days.

Year-To-Date Summary

Comparing the first seven months of 2022 to the same period in 2021, new listings (3,635) increased 0.3%, pending sales (2,930) decreased 5.5%, and closed sales (2,724) decreased 2.8%.

Average and Median Sale Prices

Comparing 2022 to 2021 through July, the average sale price has increased 13.0% from $422,000 to $476,900. In the same comparison, the median sale price has increased 11.5% from $390,000 to $435,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1553 Linwood Street, Eugene, OR 

Price: $599,000    Beds: 7    Baths: 5.0    SqFt: 3100

Great potential for live in owner/manager. Unique property with five separate living units. large covered patio and deck areas. 2 car garage, rv parking with rv hookup and dump, irrigation well. Updates and construction are fully permitted. This ho...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There is a window of opportunity for home buyers right now that is most likley going to be short lived.  This window is mortgage interest rates that have dropped below 5% at the same time that we have a much softer housing market both nationally and here in the Eugene and Springfield area.  Locally, demand for housing has dropped off and the number of homes currently on the market has increased. The inventory of homes for sale currently is only something that home buyers dreamed about several months ago.  Yes, this window won't be here long because the Fed has already announced further rate hikes in the midst of attempting to slow the worst inflation in over 40 years.  Mortgage rates unfortunately will soon be heading back up. So if you are considering a home purchase, now is the time to take action.  Here is an article from "Realtor.com that speaks to the current national housing market".

Mortgage rates dropped to their lowest level since April, offering a reprieve to prospective home buyers who have been hit this year with higher rates and surging prices.

The average rate on a 30-year fixed-rate mortgage is 4.99% this week, down from 5.30% a week earlier, according to a survey by mortgage giant Freddie Mac published Thursday. Though rates remain well above their levels from a year ago, they have fallen swiftly in recent weeks from their 13-year high of 5.81% in June.

Mortgage rates and other measures of the cost of borrowing tend to rise and fall with expectations about the trajectory of the economy. Recently, fears that the U.S. is heading into a downturn have lowered expectations of the pace of rate rises.

Until the past few weeks, rising mortgage rates had been a key factor driving up the cost of home buying this year, adding hundreds of dollars or more to buyers’ monthly payments. That, on top of double-digit home-price growth, has helped drive buyers out of the market in recent months.

Sales of previously owned homes fell for a fifth straight month in June, according to the most recent data from the National Association of Realtors.

Elevated mortgage rates are one of the most direct effects on consumers from the Federal Reserve’s campaign to combat inflation. The central bank lifted its key policy rate by 0.75 percentage point last month, its second straight increase of that size, putting the benchmark policy rate in a range between 2.25% and 2.5%.

Those rates drive up borrowing costs for both companies and everyday Americans, making the cost of financing big-ticket purchases more expensive. While the Fed’s interest-rate increases are aimed in part at capping recent surges in the cost of housing, higher mortgage rates make it unlikely that prospective buyers who are using mortgages will get a bargain.

Mortgage rates are tied closely to the 10-year U.S. Treasury yield, which tends to move in tandem with expectations for the Fed’s benchmark rate. On Monday, the 10-year yield slipped to its lowest level since April. It rose Tuesday and Wednesday.

Still, rapid changes in mortgage rates are likely to continue as economists debate whether to be more concerned about inflation or a recession.

The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment,” said Sam Khater, Freddie Mac’s chief economist, in a statement.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

Lot 23 Abigail Lane, Eugene, OR 

Price: $110,000    Acres: 0.14    Zoning: R-1

Build your dream home on this South Eugene Lot with beautiful sweeping views of trees, the valley and city. Home plans to take advantage of this amazing lot are available with the purchase. This beautiful upscale neighborhood is a short distance fro...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!