Mortgage rates have dropped to their lowest levels since 2022, boosting purchasing power for first-time buyers and opening refinancing opportunities for homeowners across Western Oregon.
According to Freddie Mac, the average 30-year fixed-rate mortgage has fallen to 5.98%. The decline is already reshaping the housing market in communities like Salem and Eugene.
Lauren Hatmaker, president of Eugene Mortgage Brokers, said she’s seeing renewed excitement among prospective buyers.
“Folks who were out shopping but couldn’t really find something in their price range can probably buy a house that’s about $30,000 more expensive with the lower interest rates,” Hatmaker said. “So either taking a lower payment or buying more house, it really opens up a lot of options for buyers.”
Increased Purchasing Power
Hatmaker estimates that first-time buyers now have roughly 7% more purchasing power compared to just a few months ago, when rates were in the mid-6% range.
For many buyers, that translates into significant monthly savings.
“A first-time homebuyer’s payment for the same house is about $175 less per month,” Hatmaker said. “That also means people who couldn’t afford any houses that were for sale now have options.”
Refinancing Opportunities
Lower rates are also creating opportunities for homeowners who purchased during periods of higher interest rates.
“People who bought a few years ago, when rates were in the sixes and sevens, some of those folks can now refinance to a lower rate and save $100, $200, $300 a month,” Hatmaker said.
She added that homeowners carrying additional debt may benefit even more by consolidating at lower rates, potentially saving hundreds — or even thousands — of dollars each month depending on their financial situation.
Looking Ahead
While mortgage markets can fluctuate, Hatmaker expects rates to remain relatively stable in the near term. Her top advice for buyers and homeowners alike: focus on maintaining a strong credit profile to secure the best available rates.
With borrowing costs easing, housing affordability in Western Oregon may see modest improvement — at least for now.
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