Eugene Oregon Real Estate Blog

Good Monday Morning!

This past week, I had two different people ask me if the slowdown in home sales was due to the recent class action law suits against NAR and some of the major national Real Estate companies. These law suits did change the way that Realtors now have to deal with compensation for an agent who represents a buyer in a transaction. This is all that it changed, and I can say with great confidence that this has nothing to do with the slowdown in home sales both locally and nationally. The slowdown has come from a variety of factors, of which I have spoken about at great length over the past few weeks. The national economy, inflation, and mortgage interest rates are the largest culprits of the slowdown.

As I mentioned, the class action law suits did change the way that a Real Estate agent who represents a buyer has to deal with compensation. The largest change is that previously, the brokerage fee that a seller who had their home listed for sale with a broker was entered into MLS, and it included the fee to the selling agent and the fee to the buyers agent. For over one hundred years, the seller has always paid the brokerage fee for both sides of the transaction. This fee has never been a set fee and has always been negotiable. As a result of the law suits, the portion of this fee that is paid to a buyers agent cannot be mentioned in MLS. This fee, if paid by the seller, now has to be stated outside of MLS. The reality of this is that the fee can still be paid by the seller, just as it has been paid for decades. The fee for both the selling agent and the buyers agent has been baked into the sales price of the house and also into any appraisal that is completed by a lender for a buyers mortgage. The result of this is that the home buyer, in reality, is paying part of the brokerage fee in the price they pay for a home.

The assumption by some is that the seller now does not have to pay the buyer broker fee. This is true and has always been true. Nothing has changed here. As we enter into this slightly different way of doing Real Estate transactions, it has become obvious that most sellers remain willing to pay a buyer broker, and really nothing has changed except for the way MLS has to deal with broker fees for buyers agents. Wise sellers understand that a buyer for their home needs to be represented, and they understand that they would never want to deal with a non-represented buyer. A broker who represents a buyer needs to be paid for their services, and they can be paid either by the seller or the buyer. The easiest way to do this is the same way that we have been doing it for over one hundred years; both agents get paid from the home sale proceeds. Today, most buyers are barely able to come up with enough money for a downpayment and closing costs. Adding an additional fee for a buyers agent is unlikely. So, for most transactions, the sellers will continue paying agents on both sides of the transaction. This makes the most sense, because, as I stated previously, this fee is already baked into the market value of the house.

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

THIS WEEKS HOT HOME LISTING!

1640 Umpqua Ave, Eugene, OR 

Price: $1,089,000    Beds: 4    Baths: 3.5    Sq Ft: 2978

Beautiful custom Nordic home, with great attention to detail in the highly desirable Nine's neighborhood! Spacious lofty ceilings throughout the home, with two beautiful master suites on the main floor! Gourmet kitchen with commercial grade applianc... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

When the Fed took action a week ago and lowered their rates by 1/2 of a point, it gave hope to potential home buyers that maybe we could be on the path to more affordable housing. This could be true, but watch out. Part of our issue is not the current mortgage rates but the lack of housing inventory nationally. We are in a strange market that is following a long period of time where mortgage interest rates were historically low. Now that this period of time has ended, homeowners are reluctant to sell their homes that they either purchased or refinanced at those low 2.5% to 3.5% mortgage rates. This situation will not end soon and will continue to plague this country with a low inventory of homes for sale. I mention this because until mortgage rates hit a point that is low enough to entice these homeowners to sell, our national housing inventory will remain low. The issue for home buyers is that if rates were to fall into the mid-5% range, this may not be enough to get existing homeowners to sell. The lower interest rates would bring about many more buyers, but they will be chasing after very few homes for sale. This could lead to further inflation with home prices and negate any interest rate decrease. What I am saying is that the housing market we see right now may be buyers best opportunity to purchase that we will see for a long time. It very well may be that if you are thinking about a home purchase, the best scenario is to make that purchase now, before home prices escalate further, and then refinance when rates do decline further. The following is an article from "NAR" that details our current housing market.

A modest improvement in housing affordability may motivate more home buyers to make a move. Read more from NAR’s latest housing report.

Pending home sales rose slightly in August as lower mortgage rates provided some motivation to prospective home buyers. But buyers continue to face challenges such as high home prices, and many may be holding out for even lower rates, surveys show.

The National Association of REALTORS®’ Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—eked out a 0.6% increase in August. Contract signings, however, remain 3% lower than a year ago.

Still, last month’s “slight upward turn [in contract signings] reflects a modest improvement in housing affordability, primarily because mortgage rates descended to 6.5% in August,” says NAR Chief Economist Lawrence Yun. “However, contract signs remain near cyclical lows, even as home prices keep marching to new record highs.”

The housing market remains competitive: 20% of homes sold above list price in August, according to the REALTORS® Confidence Index Surveypdf. Also, NAR reported last week that the median existing-home sales price in August rose to $416,700, up 3.1% from a year earlier. That has put existing-home sales prices closer in line with new-home prices, which saw a median of $420,600 in August. Home builders continue to use price incentives to attract potential buyers to new-home construction and have been ramping up their entry-level inventory. New-home sales below $300,000 comprised 18% of the sector’s sales in August, up from 12% a year earlier, according to the National Association of Home Builders.

Buyers Watch Mortgage Rates Closely

Lower mortgage rates do appear to be coaxing home buyers off the sidelines, though cautiously. As mortgage rates have dropped to two-year lows, mortgage applications for a home purchase—a gauge for future homebuying activity—have been inching up in recent weeks, up 2% in the latest week compared to the same week a year ago, according to the Mortgage Bankers Association. The 30-year fixed-rate mortgage, which averaged 6.09% last week, is down more than 150 basis points from a year earlier.

Many prospective home buyers may be waiting for even lower rates: About 40% of consumers expect mortgage rates to decline over the next year, according to Fannie Mae’s Home Purchase Sentiment Index.

Many home buyers are hopeful that the Federal Reserve’s recent move to lower its benchmark short-term rate will translate into greater savings on borrowing costs.

But while “the Federal Reserve does not directly control mortgage rates, the anticipation of more short-term interest rate cuts has pushed long-term mortgage rates down to near 6% in late September,” Yun says. As such, on a typical $300,000 mortgage, borrowers could now save about $300 per month on a typical $300,000 mortgage compared to a few months ago when rates were much higher.

Lower mortgage rates combined with more homes being listed—up 23% in August compared to a year ago—could open up more opportunities for home buyers in the coming weeks, Yun noted in NAR’s recent existing-home sales report.  

Regional Outlook

Contract signings last month rose in the Midwest, South and West while dropping in the Northeast. Despite the recent drop in pending home sales in the Northeast, Yun notes that “in terms of home sales and prices, the region has performed relatively better than other regions in recent months.” Existing-home sales prices in the Northeast were up nearly 8% year over year in August, reaching a median of $503,200, according to NAR.

Last month, however, “contract signings rose in both the most affordable and most expensive regions—the Midwest and West, respectively—because mortgage rates have fallen nationally,” Yun says. “Housing affordability will continue to see notable improvements.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1640 Umpqua Ave, Eugene, OR 

Price: $1,100,000    Beds: 4    Baths: 3.5    Sq Ft: 2978

Beautiful custom Nordic home, with great attention to detail in the highly desirable Nine's neighborhood! Spacious lofty ceilings throughout the home, with two beautiful master suites on the main floor! Gourmet kitchen with commercial grade applianc... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Everything has certainly changed in regards to interest rates. The Fed has dropped rates by 1/2 of a point, but whether this has much impact upon current mortgage rates is yet to be seen. Many experts feel that the reduction in rates by the Fed has already been baked into the current lower mortgage rates. This could be true, but the new lower Fed rate certainly should help in potentially lowering mortgage rates further down the road and also with sustaining the lower rates. Here is the good news. Rates are substantially lower than at this time last year, and also housing prices in many price ranges have come down. We are certainly in a better market for home buyers than one year ago. The following is a recent article from "Housing Wire" that goes over the recent Fed action.

The Federal Reserve is delivering on its highly anticipated interest rate drop. 

The central bank on Wednesday voted to lower rates by a half point in its first cut since the pandemic. The move puts the federal funds rate between 4.75 percent and 5 percent. 

The Fed has been under renewed pressure to lower interest rates after the latest round of economic data showed inflation had fallen close to its 2 percent target, while unemployment had risen sharply to 4.3 percent. 

Mortgage rates began falling in anticipation of the Fed cutting interest rates this month, with the rate for the most common type of home loan dipping to its lowest level in two years, according to the Mortgage Bankers Association. The average rate for a 30-year-fixed mortgage fell to 6.15 percent last week, while purchase and refinance applications rose 5 percent and 24 percent, respectively, from the previous week, seasonally adjusted.

Mortgage rates aren’t directly tied to the Fed’s interest rate, but are influenced by the same economic conditions that the central bank considers when determining whether to lower or raise the federal funds rate. 

The National Housing Conference lauded the move in a statement, saying the cut is “set to have far-reaching implications for the U.S. housing market, potentially alleviating affordability concerns and stimulating inventory growth.”

But Fed Chair Jerome Powell cautioned Wednesday it was hard to “game out” the move’s effect on the housing market. The inventory crunch that has bogged down residential sales activity is “not something the Fed can fix,” Powell said, but is subject to market conditions and policy enacted by the federal government.

The Fed has held rates steady since last July, after hiking interest rates for more than a year in an attempt to reverse rising inflation. Mortgage rates rose alongside the Fed’s upticks, stalling home sales nationwide and sending inventory levels plummeting. Sellers who may have otherwise listed their properties have held onto them and the low mortgage rates they secured during the pandemic. 

But with mortgage rates on the decline, transactions have started rising again, with new home sales last month up nearly 15 percent from July, according to an MBA report. 

“The housing market could see a recovery sooner rather than later,” Redfin economist Chen Zhao told The Real Deal last month. “If you’re a buyer or a seller waiting for the Fed to act, a lot of that is priced in already.”

In the short-term, lower mortgage rates will likely increase competition for the few homes that are on the market, with some experts predicting that it will take months for inventory levels to recuperate from the effects of higher mortgage rates. 

“In this higher rate environment, we never got to totally catch up on inventory,” Melissa Cohn, a regional vice president with William Raveis Mortgage, told TRD in August. “Levels today are definitely higher, but there’s still not what many people would consider [them] to be normalized.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

19190 Highway 36, Blachly, OR 

Price: $695,000     14 Campsites    Acres: 14.42

Historic Triangle Lake private Campground (Camp TLC). 14 beautiful camp sites with many sites on Lake Creek. Beautiful Lake Creek flows through the campground out of Triangle Lake and then pours over spectacular and popular Lake Creek Falls just bel... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Our local Real Estate market in the Eugene and Springfield area remains sluggish in most price ranges and areas. This is particularly true in the price range of $900,000 to $1,200,000, where we are seeing extremely slow sales and an inventory that has now increased from 2 months to almost 8 months. The reasons for a sudden shift in the home sales market both here in the Eugene and Springfield area and nationally is the same as what I have mentioned previously. Inflation in home prices that has driven home values to an extreme, higher mortgage interest rates, and also a tough recession economy have all combined together to create our current depressed Real Estate market. This week, the Fed meets to determine if there will be a rate reduction and, if there is, how much of a reduction there will be. A rate reduction of 1/2 of a point had been expected, but now this much of a reduction is in doubt due to poor job numbers and inflation numbers. Any reduction in rates will be welcome, but don't look for any significant reduction in mortgage interest rates. Most, if not all, of any mortgage rate reductions has most likely been built into the current moderate rate reductions we have already seen as a result of rate reduction anticipation by the Fed. If you are holding off on looking for a home to see what mortgage rates do, this could be a mistake. The lower rates we see today may be the best we see for some time, and further rate increases could be in our future. The following is a recent article talking about mortgage rates that was posted on the NAR blog.

Borrowing costs fell ahead of the Federal Reserve’s anticipated rate cut next week. But economists say home buyers may not want to wait to see if rates go lower.

The 30-year fixed-rate mortgage fell to 6.2% this week, down significantly compared to a year ago when they surged above 7%. But some prospective home buyers are holding out for even lower rates in anticipation of the Federal Reserve’s meeting next week, where it’s expected to cut short-term interest rates.

Still, home buyers may be getting their hopes up too much: “Even with the September expected rate cut [by the Fed], mortgage interest rates are not likely to move as this cut has been baked into the mortgage market,” says Jessica Lautz, deputy chief economist of the National Association of REALTORS®.

Instead, prospective buyers may want to take advantage of current rates, which have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023, Freddie Mac reports. The savings on a $400,000 mortgage today compared to October 2023, when rates were much higher, is about $341 monthly and $4,092 annually, Lautz says. “This is substantial,” she adds.

Nevertheless, the homebuying market remains mostly constrained. The Mortgage Bankers Association’s weekly mortgage application index showed that home purchase applications were up only 2% compared to the previous week and down 3% from a year ago.

“The overall housing market remains constrained due to the total cost of homeownership,” Lautz says. Home prices have risen to record highs in recent months.

“Despite the improving mortgage rate environment, prospective buyers remain on the sidelines as they negotiate a combination of high house prices and persistent supply shortages,” says Sam Khater, Freddie Mac’s chief economist.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Place, Springfield, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private ? acre lot with filtered views through the trees. Designed for either main level living or a great setup for separation of space with additional bedrooms and a bonus room upstairs and a large fam... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The Real Estate market in the Eugene and Springfield area remains fairly steady, with no significant swings in sales prices or inventory of homes for sale. Even though statistics are showing that there is no significant home market swing, those of us who are working in the Real Estate market in Lane County will tell you that there is a swing underway and the market is not heading in a good direction. There are far fewer buyers out looking at homes; the multiple offers that we saw in lower and median priced homes is for the most part a thing of the past, and price reductions on homes for sale is the rule and not the exception. The hope is that when the Fed meets on the 18th of this month, we might see a rate reduction of around 1/2 of a percent. This could happen, but the recent jobs report and other negative economic news of late could be the spoiler, and the Fed rate reduction could be much smaller if it happens at all. Economic uncertainty, the continuation of inflation, along with mortgage interest rates that have not decreased enough to have an effect on monthly payments, is taking a toll on the housing market. Without some positive change in the national economy, don't look for any sizable rebound in the housing market. Here are the home sales statistics for Lane County in August of 2024.

New Listings

New listings (485) decreased 9.0% from the 533 listed in August 2023, and decreased 4.3% from the 507 listed in July 2024.

Pending Sales

Pending sales (369) increased 3.4% from the 357 offers accepted in August 2023, and decreased 4.2% from the 385 offers accepted in July 2024.

Closed Sales

Closed sales (362) increased 2.8% from the 352 closings in August 2023, and increased 0.3% from the 361 closings in July 2024.

Inventory and Time on Market

Inventory held steady at 2.5 months in August. Total market time decreased to 46 days.

Year-to-Date Summary

Comparing the first eight months of 2024 to the same period in 2023, new listings (3,578) increased 5.1%, pending sales (2,698) increased 2.9%, and closed sales (2,492) increased 2.4%.

Average and Median Sale Prices

Comparing 2024 to 2023 through August, the average sale price has increased 0.8% from $472,700 to $476,500. In the same comparison, the median sale price has increased 1.1% from $435,000 to $439,900.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3469 River Pointe Dr, Eugene, OR 

Price: $1,125,000    Beds: 4    Baths: 3.2    Sq Ft: 3363

This is a Gorgeous and extremely well kept home in the highly sought after River Pointe neighborhood of North Gilham. This home not only has many high end extras, but it has a floor plan that suits many lifestyles. The spacious Primary Bedroom is on... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Mortgage interest rates continue to decline, but at a snail's pace. Any relief in mortgage rates is a relief, but so far, the decline does not seem to be enough to kick off a revival in the housing market, either locally or nationally. The real truth is that home payment numbers need to come down. This is either going to happen with further rate reductions or with housing prices dropping. A combination of the two would be the best case, and that is what seems to be taking place right now. With the anticipation of the Fed lowering rates in September, this might just be the best time to make your move with a home purchase. My reasoning is that with a mortgage rate reduction creating more demand, this may halt home prices from coming down further with an inventory of homes that remains very limited. My suggestion is to not gamble and make your move on a home purchase soon. The following is a recent article from "NAR".

Some would-be home buyers are waiting for borrowing costs to drop even lower. Is that a wise strategy?

Mortgage rates have remained in the mid-6% range in recent weeks—the 30-year fixed-rate loan was at a 6.46% average this week, according to Freddie Mac. But some aspiring home buyers may still be waiting for even lower rates before they make a move, hoping to get a better deal on borrowing costs, even though rates are dramatically lower than they were a year ago, when they were above 7%.   

“Although mortgage rates have stayed relatively flat over the past couple of weeks, softer incoming economic data suggest rates will gently slope downward through the end of the year,” says Sam Khater, Freddie Mac’s chief economist. “Earlier this month, rates plunged and are now lingering just under 6.5%, which has not been enough to motivate potential home buyers. We expect rates likely will need to decline another percentage point to generate buyer demand.”

Despite recent steadiness in rates, mortgage applications for home purchases fell 5% this week and are 8% lower than a year ago, the Mortgage Bankers Association reports. “Even with lower mortgage rates, potential buyers might be more selective now that there are more options,” says Joel Kan, an economist with the MBA.

The National Association of REALTORS® reported this week that For Sale inventory of existing homes has risen by 20% compared to a year ago, giving buyers more choices and increasing seller competition.

“The other point to note is that, yes, rates are lower—but they’re still 6.5%, which is not low for those borrowers out there with sub-5% rates,” Kan says. The majority of current mortgage holders have rates below 5%—many even below 3%—from when they purchased a home years earlier. This has made many homeowners reluctant to move.

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

THIS WEEKS HOT HOME LISTING!

2267 Willona Dr, Eugene, OR 

Price: $435,000    Beds: 3    Baths: 2.0    Sq Ft: 1248

This charming 1940's home has been tastefully updated from top to bottom. Features include beautifully refinished hardwood floors, new composition roof in 2019, new gas HVAC system with central air conditioning & new ductwork in 2020, new flooring i... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Both the national and local housing markets are anything but stable right now. The anticipation of some possible further mortgage rate decreases has most home buyers sitting back and waiting, while home sellers are more anxious than ever to have those buyers looking and purchasing their homes. Even though mortgage rates are down slightly, it has not been enough to activate the masses of home buyers who are wanting to buy but either can't afford to buy right now or think that by waiting they might see both lower mortgage rates and lower home prices. Although this is a possibility, it is certainly a gamble.

The truth is that right now may be the best time to purchase a home. Rates are lower, and even though the inventory of homes for sale remains low, homes for sale are taking longer to sell, and many homes are just sitting. This is a far different scenario than what we saw last year and earlier this year, with homes selling rapidly and bidding wards being the rule.

Right now, home prices are coming down, and the potential for negotiating on the price and terms of a home purchase is the best it has been in years. The reality is that if we do see a sizeable reduction in mortgage loan rates in the near future, this will increase buyer demand, and with the already low inventory of homes, this may put us right back to where we were last year with high demand, bidding wars, and higher home prices that eat up any gains that buyers received with lower mortgage rates. My advice right now is that if you are looking to purchase a home, start looking actively again. You just might be pleasantly surprised at how much more affordable homes are right now.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

6883 Forsythia Street, Springfield, OR 

Price: $529,000    Beds: 4    Baths: 2.5    Sq Ft: 2037

This home offers a spacious main living area with soaring ceilings, a cozy gas fireplace, and large windows providing plenty of natural light throughout. The kitchen is fully equipped with quartz countertops, stainless steel appliances, a functional... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The statistics for July home sales in Lane County just came out. The statistics show us what appears to be a fairly healthy home sales market in all categories, with the exception of the increasing inventory of homes for sale. The numbers show that home sales increased, that pending sales increased, and that there was only a moderate increase in home values. All of these are positive signs. The reality is that for anyone who works and is deeply involved with home sales in our local area, these numbers are not showing the true market. When we see the home sales numbers for August, maybe we will see a market reflection that is more indicative of the current state of home sales in Lane County. What I am seeing is a rapidly slowing market, far less home buyer enthusiasm, and one that reminds me of the last big dip in our local market in 2008–2010. Hopefully, this is just a short blip in the market, but I have to wonder if this is the beginning of a serious market downturn. The culprit here is the economy. Inflation has driven up home prices and, at the same time, kept mortgage interest rates higher. Inflation has also eaten up the average person's and their family’s money reserves and decreased their spending ability because of the increased living costs. Without some relief from inflation and mortgage interest rates, the housing market may continue to slide. There is a national shortage of housing, so any relief from inflation and higher mortgage interest rates could certainly bring about another housing boom. Time will tell which direction this market goes! Here are the home sales statistics for Lane County in July 2024.

New Listings

New listings (507) increased 10.9% from the 457 listed in July 2023, and increased 0.8% from the 503 listed in June 2024.

Pending Sales

Pending sales (385) decreased 1.0% from the 389 offers accepted in July 2023, and increased 0.5% from the 383 offers accepted in June 2024.

Closed Sales

Closed sales (361) increased 4.6% from the 345 closings in July 2023, and increased 13.2% from the 319 closings in June 2024.

Inventory and Time on Market

Inventory decreased to 2.5 months in July. Total market time increased to 48 days.

Year-to-Date Summary

Comparing the first seven months of 2024 to the same period in 2023, new listings (3,087) increased 7.9%, pending sales (2,354) increased 2.7%, and closed sales (2,116) increased 2.2%.

Average and Median Sale Prices

Comparing 2024 to 2023 through July, the average sale price has increased 1.9% from $467,800 to $476,800. In the same comparison, the median sale price has increased 1.9% from $431,000 to $439,300.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1640 Umpqua Ave, Eugene, OR 

Price: $1,100,000    Beds: 4    Baths: 3.5    Sq Ft: 2978

Beautiful custom Nordic home, with great attention to detail in the highly desirable Nine's neighborhood! Spacious lofty ceilings throughout the home, with two beautiful master suites on the main floor! Gourmet kitchen with commercial grade applianc... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

With all of the ugly economic news we are currently listening to, there has been a ray of hope with mortgage interest rates declining. Any reduction with mortgage rates is great news, as higher rates have been an instrumental part of the nation's sluggish home sales market. There has also been mention of the fact that the Fed may reduce rates in the near future. Time will tell the story here, but without further reductions in mortgage rates, don't look for any huge improvements anytime soon with home sales. The following is a recent article on mortgage rates from "NAR".

Real estate news and top headlines from major news sources into a real estate context each weekday, alongside breaking news from NAR, business tips, and industry trends.

Home buyers and refinancers had the opportunity to lock in the lowest mortgage rates since early February this week, averaging 6.73%. Plus, the average mortgage rate is now lower than a year ago.

The Federal Reserve also suggested this week that a possible cut to its key benchmark rate could take place this fall.

That may prompt some prospective home buyers to hold out for even lower mortgage rates. But Lisa Sturtevant, Bright MLS chief economist, says that hoping that rates to head much lower could be a miscalculation.

“The Federal Reserve will almost certainly cut rates in September—the first cut since 2020,” Sturtevant says. “However, there is no direct ‘cause-and-effect’ relationship between the Fed rate cuts and a drop in mortgage rates.” What’s more, “expectations about a September rate cut are already baked in, which is why we’re already starting to see mortgage rates start to come down.”

Still, Sturtevant does expect mortgage rates to continue to fall throughout the second half of the year and end the year at an average of about 6.4% for a 30-year fixed-rate mortgage. “Rates will continue to fall in 2025, though it is likely that they will remain above 6% through the end of next year,” she says.

Housing affordability will remain a top challenge for home buyers, who have been facing higher home prices, says Sam Khater, Freddie Mac’s chief economist. But “a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential home buyers,” he says.

Indeed, the National Association of REALTORS® recently reported that more opportunities for home buyers appear to be opening up in the market, and contract signings are already responding, rising nearly 5% in June.

Mortgage Rates This Week

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 1:

30-year fixed-rate mortgages: averaged 6.73%, dropping from last week’s 6.78% average. Last year at this time, 30-year rates averaged 6.90%.

15-year fixed-rate mortgages: averaged 5.99%, falling from last week’s 6.07% average. A year ago, 15-year rates averaged 6.25%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3469 River Pointe Dr, Eugene, OR 

Price: $1,169,000    Beds: 4    Baths: 3.2    Sq Ft: 3363

This is a Gorgeous and extremely well kept home in the highly sought after River Pointe neighborhood of North Gilham. This home not only has many high end extras, but it has a floor plan that suits many lifestyles. The spacious Primary Bedroom is on... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

We now find ourselves in a very strange Real Estate market. The inventory of homes for sale remains extremely low, both nationally and here in the Eugene and Springfield area. Typically, low inventory brings on a strong sellers market, but not right now. Even with few homes to choose from, buyers are slow to pull the trigger on home purchases. Mortgage interest rates remain elevated, but they are lower than the level we had at the same time last year. So, why do we have a more sluggish home sales market? The answer most likely comes from a lack of consumer confidence. High inflation rates over a long period of time have eaten away at savings and left most people with less money in their pockets at the end of the month. We just have not seen a great deal of positive news in regards to the economy, and the combination of the two is creating concern for would-be home buyers. There is a huge pent-up demand for housing, and most likely, any positive economic events will turn our current sluggish housing market into a much more active one. The following article is a recent article from "NAR" that describes our present national housing market.

Mortgage rates have been holding mostly steady this month, after dropping nearly a half percent from their peak earlier this year, Freddie Mac reports. “Despite these lower rates, buyers continue to pause, as reflected in tumbling new and existing home sales data,” says Sam Khater, Freddie Mac’s chief economist.

The National Association of REALTORS® reported this week that existing-home sales in June fell 5.4% compared to a year earlier. New-home sales also fell, down 7.4% compared to a year ago and the lowest pace since November 2023. 

“Many potential buyers are remaining in a holding pattern due to elevated mortgage rates that averaged near 7% in June,” says Carl Harris, chairman of the National Association of Home Builders. “However, moderating inflation suggests lower interest rates in the months ahead and that should bring more buyers off the sidelines.”

That could help home buyers handle the higher home prices, with existing-home prices surging to an all-time high in June, reading a median of $426,900. At this week’s average 30-year fixed mortgage rate of 6.78%, with a 20% down payment, a household would face a monthly mortgage payment on a median-priced existing home of $2,222, says Jessica Lautz, NAR’s deputy chief economist. Housing affordability and still-high inflation remain pressing issues holding many would-be home buyers back.

Indeed, real estate agents in the Mid-Atlantic region report that affordability was the main reason their clients paused their home search over the past six months, with about half citing high prices, not enough homes in their price range, or high mortgage rates.

“With mortgage rates hovering around 7% and home prices continuing to rise, financing is a growing challenge for buyers, and this is beginning to impact a buyer’s ability to make it across the finish line,” says Lisa Sturtevant, Bright MLS’s chief economist. Bright MLS data shows that a rising percentage of sellers—14%, as of June—had a contract fall through due to the buyer’s inability to secure financing.

Mortgage Rates This Week

Freddie Mac reports the following national averages with mortgage rates for the week ending July 25:

• · 30-year fixed-rate mortgages: averaged 6.78%, slightly higher than last week’s 6.77% average. A year ago, 30-year rates averaged 6.81%.
• · 15-year fixed-rate mortgages: averaged 6.07%, rising slightly from last week’s 6.05% average. A year ago, 15-year rates averaged 6.11%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

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Price: $465,000    Beds: 3    Baths: 2.0    Sq Ft: 1812

This single level home has been tastefully updated and is located in a quiet West Eugene neighborhood. Features include a newer 3-head ductless heat pump AC/heating system, a spacious living room, large bedrooms & a 2-car garage with built-in storag... View this property >> 

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