Seven percent.
That’s the number that’s going to get most of the housing headlines this week.
Freddie Mac’s September 24 mortgage survey put the national average 30-year fixed mortgage rate at 7.03%.
One week earlier it was 6.95%.
On September 10, it was 6.76%.
And back on August 20, it was 6.65%. Freddie Mac
If you’re thinking about buying a home in Bend or elsewhere in Central Oregon, it’s easy to look at that trend and reach a simple conclusion:
I’ll wait.
For some buyers, waiting may absolutely be the right decision.
But I don’t think mortgage rates should be analyzed in isolation.
Because while borrowing became more expensive, something else has been happening in the Central Oregon housing market.
Sellers are negotiating.
And that means the question isn’t simply:
“What’s today’s mortgage rate?”
It’s:
“What does the entire transaction look like?” Reach out to me for more!
What 7% Actually Means
Mortgage rates matter because they directly affect purchasing power.
Freddie Mac provides a useful illustration.
A $300,000, 30-year mortgage at 6.5% produces principal and interest of approximately $1,896 per month.
At 7%, that rises to approximately $1,996 per month.
At 7.5%, it’s about $2,098. My Home
Those figures exclude taxes, insurance and other ownership costs, but they make the point:
Half a percentage point matters.
So I’m not going to tell buyers to ignore mortgage rates.
Quite the opposite.
Know your numbers before you fall in love with the house.
Work with a qualified lender and determine what payment is comfortable—not simply what you can technically qualify for.
Then build the home search around that number. Reach out to me for more!
But Something Else Is Happening in Central Oregon
Higher financing costs are making buyers more selective.
Sellers are seeing that.
As of September 23, one MLS-based Central Oregon market snapshot counted 1,409 active single-family listings in Deschutes County.
Of those, 870—or 61.75%—had reduced their asking price, with an average reduction of 6.65%. Reed Melton Realty Group
That’s important.
It doesn’t mean every seller is desperate.
It doesn’t mean every home is overpriced.
And it doesn’t mean you should automatically offer another 10% below the reduced price.
But it tells us something about the market:
Sellers are receiving feedback from buyers, and many are responding. Reach out to me for more!
Bend Buyers Are Negotiating More Than Price
We saw another signal in August.
Bend’s August housing data showed that 44.7% of closed single-family transactions included seller concessions. Bend Premier Real Estate
Think about what that means.
Nearly half of the closed transactions in that dataset involved the seller contributing something financially beyond simply agreeing on a purchase price.
Depending on the transaction, financing and lender requirements, seller contributions may potentially help with allowable closing costs or other financing expenses.
That can matter considerably when rates are around 7%.
This is why I don’t think buyers should judge a deal solely by how far below asking price they negotiated. Reach out to me for more!
Price Is Only One Lever
Suppose you’re considering a home listed at $700,000.
There are several possible economic components to the transaction.
Purchase price.
Seller concessions.
Financing.
Inspection-related negotiations.
Repairs.
Closing timing.
Possession.
Contingencies.
The combination matters.
A buyer who gets $15,000 off the purchase price hasn’t necessarily structured a better transaction than someone who negotiates a different combination of price and allowable seller contributions.
Which structure is best depends on the buyer.
That’s where your lender and real estate agent should be working together.
The lender can model the financing.
The agent can analyze the property and negotiating environment.
Then the buyer can make an informed decision. Reach out to me for more!
Don’t Chase a Rate Buydown Without Doing the Math
With rates higher, you’re going to hear more about mortgage-rate buydowns.
They can be useful.
But “lower rate” doesn’t automatically mean “better deal.”
You need to understand:
How much does it cost?
Is the reduction temporary or permanent?
Who is paying for it?
How long do you expect to own the property?
What happens if you refinance later?
Would the same dollars create more value somewhere else in the transaction?
Those are financial questions, and the lender should provide the actual calculations.
The important thing is not to choose a financing strategy because it sounds attractive in an advertisement.
Run the numbers. Reach out to me for more!
Sellers Need to Understand the Buyer’s Payment
There’s a lesson here for sellers too.
Imagine you listed your home several months ago based on comparable sales from spring.
The house hasn’t sold.
Meanwhile, the buyer looking at it today is borrowing money at a meaningfully higher rate.
The home may not have changed.
The buyer’s monthly economics did.
That’s one reason pricing strategy matters so much in this environment.
The September 23 Deschutes County data found that 30 of the week’s 61 pending sales had undergone a price reduction before securing a contract. Those properties had reduced asking prices by an average of 8.96%. Reed Melton Realty Group
That doesn’t mean sellers should immediately slash prices.
It means the market is giving us evidence. Reach out to me for more!
Listen to it.
The First Few Weeks Matter
Current Bend analysis also shows an important distinction between homes that are positioned correctly at the beginning and those that require several months to sell.
The September Beacon-based report recorded 160 Bend single-family closings in August, a $721,000 median price, 34 median days on market, and about 3.5 months of inventory. Bend Oregon Real Estate
So homes are still selling.
This is not a frozen market.
But buyers are selective.
A correctly priced, well-presented property can operate very differently from one that enters the market aspirationally priced and spends the next three months chasing buyers downward.
For sellers, the first pricing decision matters. Reach out to me for more!
Buyers: Days on Market Is Information
This is where buyers can begin looking for opportunity.
A home listed yesterday is different from one that’s been available for 100 days.
A home that has never reduced its price is different from one that’s already had two reductions.
A seller who already moved may be in a different position from someone who doesn’t need to sell.
We shouldn’t assume motivation.
But we can analyze evidence.
Before writing an offer, I want to understand:
How long has the home been listed?
What was the original price?
How many reductions have occurred?
Did it previously go pending?
What comparable homes have sold?
What else can the buyer purchase today?
What condition issues are visible?
Are seller concessions being offered?
That’s how we begin developing a negotiating strategy. Reach out to me for more!
Don’t Wait for a “Perfect Market”
There’s another trap buyers can fall into.
Waiting for everything to become favorable at the same time.
Lower prices.
Lower mortgage rates.
More inventory.
Less competition.
Seller concessions.
Perfect economic certainty.
That market may never exist.
If mortgage rates decline significantly, more buyers may re-enter the market.
If rates remain elevated, sellers may become more flexible.
If prices decline, competition can change.
Real estate markets are interconnected.
One variable rarely moves by itself.
So instead of asking:
“Is this the perfect time to buy?”
I think the better question is:
“Does buying this particular property, under these terms, make sense for me?”
That’s answerable. Reach out to me for more!
Central Oregon Isn’t One Market
This becomes even more important once you broaden the search beyond Bend.
The latest regional Beacon data shows approximately:
Bend: 3.5 months of inventory
Redmond: 4 months
Sisters: 5.5 months
Sunriver: 5.5 months
Crook County: 6 months
Jefferson County: 6.5 months
La Pine: 9 months Bend Oregon Real Estate
Those are substantially different negotiating environments.
If Bend stretches the budget at today’s interest rate, maybe Redmond deserves another look.
Maybe La Pine does.
Maybe Prineville.
Or perhaps a different Bend neighborhood gives you what you actually need.
The answer doesn’t always have to be “spend more.”
Sometimes the better answer is “search smarter.” Reach out to me for more!
Don’t Forget the Cost After Closing
The mortgage isn’t the only expense involved in homeownership.
Especially in Central Oregon, buyers may need to evaluate:
Heating.
Roof condition.
Snow removal.
Trees.
Insurance.
Well and septic systems.
Private-road maintenance.
HOA costs.
Travel and commute.
Property maintenance.
A lower purchase price can quickly lose its advantage if the property introduces expenses you didn’t anticipate.
That’s why inspections and local professionals matter.
I maintain a Preferred Vendors resource with Central Oregon professionals buyers and homeowners can consider for inspections, repairs, lending, insurance, maintenance and other homeownership needs.
Internal link: /preferred-vendors/
The goal isn’t simply getting the keys.
It’s understanding what happens after you get them. Reach out to me for more!
Use Technology to Find the Opportunity
The Keller Williams App can help you search current Central Oregon listings, monitor price changes and save the homes you’re interested in.
KW App CTA: Search Bend and Central Oregon homes in my Keller Williams App. Save the properties that interest you and send them to me—then we’ll look at price history, days on market, competition and negotiating opportunities together.
Because when mortgage rates are around 7%, buyers need more than listings.
They need information.
And they need strategy. Reach out to me for more!
The Bottom Line
Yes, the average 30-year mortgage rate reached 7.03% on September 24. Freddie Mac
That’s important.
But here’s what else is important:
More than 61% of active Deschutes County single-family listings had undergone a price reduction in the September 23 snapshot. Reed Melton Realty Group
And nearly 45% of August Bend closings involved seller concessions. Bend Premier Real Estate
Those numbers don’t cancel each other out.
Together, they describe the market.
Financing is challenging.
Buyers are selective.
Sellers are adjusting.
Transactions are still happening.
For buyers, that means the goal isn’t to ignore the 7% mortgage.
It’s to understand what the higher rate costs—and then determine whether price, concessions, location and negotiating leverage can create a transaction that still makes sense.
Don’t buy because you’re afraid rates will go higher.
Don’t refuse to buy simply because rates reached 7%.
Buy when the property, payment, terms and lifestyle work together.
That’s a much better decision than trying to predict what the housing market will do next.