The Cost of Waiting for Mortgage Rates To Go Down

Mortgage rates have increased significantly in recent weeks.

And that may mean you have questions about what this means for you if you’re planning to buy a home. Here’s some information that can help you make an informed decision when you set your homebuying plans.

The Impact of Rising Mortgage Rates

As mortgage rates rise, they impact your purchasing power by raising the cost of buying a home and limiting how much you can comfortably afford. Here’s how it works.

Let’s assume you want to buy a $400,000 home (the median-priced home according to the National Association of Realtors is $389,500). If you’re trying to shop at that price point and keep your monthly payment about $2,500-2,600 or below, here’s how your purchasing power can change as mortgage rates climb (see chart below). The red shows payments above that threshold and the green indicates a payment within your target range.

As the chart shows, as rates go up, the amount you can afford to borrow decreases and that may mean you have to look at homes at a different price point. That’s why it’s important to work with a real estate advisor to understand how mortgage rates impact your monthly mortgage payment at various home loan amounts.

Are Mortgage Rates Going To Go Down?

The rise in mortgage rates and the resulting decrease in purchasing power may leave you wondering if you should wait for rates to go down before making your purchase. Realtor.com says this about where rates could go from here:

“Many homebuyers likely winced . . . upon hearing that the Federal Reserve yet again boosted its short-term interest rates by three-quarters of a percentage point—a move that’s pushing mortgage rates through the roof. And the already high rates are just going to get higher.”

So, if you’re waiting for mortgage rates to drop, you may be waiting for a while as the Federal Reserve works to get inflation under control.

And if you’re considering renting as your alternative while you wait it out, remember that’s going to get more expensive with time too. As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

“There is no doubt that these higher rates hurt housing affordability. Nevertheless, apart from borrowing costs, rents additionally rose at their highest pace in nearly four decades.”

Basically, it is true that it costs more to buy a home today than it did last year, but the same is true for renting. This means, either way, you’re going to be paying more. The difference is, with homeownership, you’re also gaining equity over time which will help grow your net worth. The question now becomes: what makes more sense for you?

Bottom Line

Each person’s situation is unique. To make the best decision for you, partner with a real estate advisor to explore your options.

Keep reading here.

Wondering if now is the right time to buy?

Related Links

• The Type of Renovation You Need to Save Up for, Based on Your Home’s Age

• 8 Things You’ll Regret Not Asking Your Landlord Before Moving In

• Steps You Can Take Now to Prepare Your Home for Winter

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Steps You Can Take Now to Prepare Your Home for Winter

Once winter comes, you will regret ignoring home issues while the weather was nice.

Figure out what you can do now to prepare your home for winter so that you can relax and know that you will stay warm and comfortable once the weather is cool.

Have Someone Check Your Furnace to Make Sure It Is Working
Once the temperature starts to drop, you are going to want to turn on your furnace and know that it will heat your home. If the furnace is not working correctly, you will be stuck dealing with an uncomfortable temperature in your home. Have a company like Countryside check your furnace while the weather is still warm so that you will be able to use it as planned when it gets cold.

Deal With the Mess in Your Yard That You Have Been Ignoring
Branches and leaves can gather all across your lawn. When you leave a mess in your yard as winter comes, you will have a soggy mess to deal with in the springtime. You should take care of the yard that you have been neglecting before the weather turns cold so that you have it easier when the weather warms up again.

Check for Exterior Painting Work That Needs to Be Done
Chips in the paint on your home can lead to issues, and painting is not a project that you want to take on in the wintertime. Look over your home before it gets too cold and see if there are any paint touchup projects you need to do.

Repair Bad Wood on Your Deck or Porch
If there is a spot on your deck that you always avoid because the wood is soft there, consider repairing that before winter. You don't want to have extra hazards to deal with when the weather is cold and the ground is covered with ice.

Make Sure That Windows Are Sealed Well
Windows should keep cold air out of a home. If they are not sealed properly, they will not do that. Look over your home's windows and see if they need to be caulked or if any other work needs to be done to help them be sealed up well.

It is good to care for your home before real issues develop, and it is smart to focus on caring for the place before winter comes, too.

Get more like this on RISMedia.

Related Links

• The Type of Renovation You Need to Save Up for, Based on Your Home’s Age

• 8 Things You’ll Regret Not Asking Your Landlord Before Moving In

• 6 Yard Maintenance Mistakes Most People Make During the Fall

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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6 Yard Maintenance Mistakes Most People Make During the Fall

Summer may be in the rearview mirror, but now’s not the time to fall behind on yard maintenance.

As the weather gets cooler and evenings arrive earlier, we’re all tempted to spend less time outdoors and let landscaping tasks fall by the wayside.

But now’s not the time to slack off!

“As we enter the fall and winter months, many homeowners may find themselves engaging in some extra yardwork to take care of falling leaves, debris from storms, and other seasonal maintenance tasks,” says Jeremy Walters, sustainability ambassador at Republic Services.

Not regularly maintaining your lawn, garden, or other areas of your home’s exterior during the fall can have consequences. Don’t let the following yard maintenance mistakes turn into bigger issues.

1. Throwing yard waste in the trash

Instead of tossing lawn clippings and fallen leaves into the trash, aim for eco-friendly disposal. You can either throw tree and yard clippings in the green bin or use them as mulch to enrich your lawn and other plants.

“When you mow your lawn, leave the clippings where they fall. They will help enrich the soil,” says Walters. “If you can avoid putting your lawn clippings or yard waste in the trash, you’re taking a small step to help support the environment.”

2. Letting debris pile up in the gutters

“All sorts of debris can land in your gutters, including leaves, twigs, seeds, and trash, that gets caught in the wind like plastic bags,” says Michael Green, vice president of operations for Benjamin Franklin Plumbing.

Not cleaning out your gutters could cause damage to the roof since pooling water can rot your fascia, shingles, and the edge of your roofline. In the worst of situations, an overflowing gutter can damage the home’s foundation.

3. Not composting

If all yard clippings were composted, about 33 million pounds of organic waste could be kept out of landfills each year, according to the Environmental Protection Agency.

When composting at home, yard trimmings can be added to an outdoor compost pile. Generally, compost piles or bins include coffee grounds, fruits and vegetables, eggshells, tea bags, nutshells, yard waste, and more.

“Typically, you can’t compost fats, meats, or dairy products, but it is best to check with your local service provider on acceptable materials,” says Walters. “And you should never put organic waste in your curbside recycling bin.”

4. Failing to curb your critter problem

Your yard is likely going to attract critters of all kinds.

“Although ‘pest-proof’ homes aren’t possible, there are ways to minimize the risk of a pest infestation,” says Green. “Remove or relocate any bushes, shrubs, or trees growing next to the house.”

He also recommends examining crawl spaces in and under the home (ooh, creepy) and blocking every hole and entry point.

“Clean up clutter, and don’t let tools, outdoor furniture, or other items lean against a house or garage,” says Green.

Rain can pool in these items, and standing water can attract unwanted pests.

5. Not watering your lawn

You might assume that the rain during the fall season will take care of watering your lawn, but you still need to maintain a regular schedule. Experts say your lawn should get 1 to 1.5 inches per week during the fall. If your lawn is not getting regular moisture, you need to water it.

Use the footprint test to determine if you’ve been watering your lawn enough. Walk across the lawn, and see if the grass blades spring back. If they do, your lawn has adequate moisture. If you can still see your footprint in the grass, your lawn needs more water.

6. Forgetting to target annoying weeds

The cooler temperatures bring frost that may kill weeds, but weeds are persistent little buggers.

Weeds, like fall dandelion, are taking root right now, and it’s a good idea to eliminate them before they get out of control. The frosty weather might kill the weeds in your yard, but they might require more intervention. Apply an herbicide or pull the weeds by hand.

“This routine maintenance will help your dormant plants spring back in a few months,” says Chris Gorne, aka the Plant Dr. on Thumbtack.

Keep reading on Realtor.com

Related Links

• The Type of Renovation You Need to Save Up for, Based on Your Home’s Age

• 8 Things You’ll Regret Not Asking Your Landlord Before Moving In

• What Experts Say Will Happen with Home Prices Next Year

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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8 Things You’ll Regret Not Asking Your Landlord Before Moving In

Moving can be stressful.

Beyond the mind-boggling logistics of moving all of your stuff (how is it that you really don’t notice you’re accumulating that much stuff until you have to box it up?!), there’s the added part of having to deal directly with the law as well as navigating a whole other myriad of systems built to not benefit you, the tenant. To put it lightly, it’s quite easy for even the most prepared of renters to slip up somewhere along the move-in process. One of the most common “oh shoot” moments? Forgetting to ask your landlord an important question before signing the lease.

I believe that one of the most powerful learning tools we have is each other, so, in this light I have asked my noble colleagues to come forward and speak to these “If only I had thought to ask!” moments. From small maintenance-related troubleshooting to money-saving tactics, here are the eight questions that would have saved us down the line:

1. Can we negotiate a maximum rent increase for resigning the lease?

Gen X had Ross and Rachel as their great “will-or-won’t they” relationship. For Millennials, it seems like it might be, “Is my landlord going to raise my rent when my lease is up?” But here’s a fun tip: You can get yourself out of this renter’s Schrödinger’s Cat paradox simply by asking your landlord as soon as possible—as in before signing the lease. Caroline Ammarell, AT’s senior manager of content strategy and analytics, says she regrets not asking her landlord to include a maximum rent increase for the following year’s renewal in her previous apartments’ leases. For her current apartment, she not only asked her landlord before signing, but was even able to negotiate the figure. Not only has it allowed her to better plan ahead, but she figures it’ll probably save her some money in the future.

2. Can we add a rent-responsible clause?

One thing Nicoletta Richardson, our associate senior news editor, regrets not asking for an old apartment? The process, penalties, and accepted situations for breaking a lease. Knowing your potential exit strategy up front can save a lot of time and frustration if you end up having—or wanting—to move.

Besides going over the lease-termination specifics, Jose Castro, AT’s director of operations, also recommends asking your landlord if you can include a rent-responsible clause in your contract. While you’ll normally have to pay your landlord a penalty to break a lease, this addendum states that you’re responsible for finding a replacement tenant, and if you succeed, you suffer no penalty. Even if you’re not planning on having to break your lease mid-year, it’s a good thing to include—your future self might thank you.

3. What the “actual rent” is on the lease?

Unfortunately, some landlords can be trying to pull tricks—at least that’s what happened to Laina Zissu, AT’s programmatic sales and strategy manager. On her last lease, she discovered that though she signed the lease at market value—the “actual rent” on her lease was almost double. Though her building was rent-controlled, this caveat meant that her landlords technically could raise her monthly rate up to that figure on the lease. The best way to avoid this happening? Simply ask to confirm that the actual rent is the same as what you’re paying each month.

4. Are there any improvements to the unit that the current tenants are planning to take?

You’d be surprised what safety measures your landlord has to install for you—and what you’re responsible for. Case in point? Though Nicole Lund, our associate commerce editor, saw a deadbolt in her apartment in her viewing, she didn’t learn until after she moved in that the previous tenants had installed it and subsequently took it with them. If Lund wanted the extra security measure, too, she was told it was her responsibility to purchase and install. Prevent ending up like Lund and confirm that what you see in your viewing is what will be in the apartment on move-in day.

5. What’s your cell number?

When Richardson first looked at her current apartment, she noticed the unit had some unfinished upgrades. She brought them up to her landlord who assured her they would be taken care of by the time they moved in. Come move-in day, though, some projects weren’t completed, like turning the gas on. She e-mailed the landlord and he said he’d get someone to come the next day. So Richardson worked from home to let the person in; however, when he got there, it turned out that the gas switch was not easily accessible. The two of them went to call the landlord for information—but they realized they only had his work number and he wasn’t in the office. It eventually was all worked out, but it was a headache that could have been solved had Richardson asked for his direct line before moving in.

6. Are you planning on making upgrades to other units anytime soon?

Here’s a story: Two weeks after Jean Simon, web engineer, moved into her current apartment, she found out that the three other empty units in her building were getting their carpet and replaced with hardwood floors—but not hers! She regrets not asking her landlord if there were any plans to upgrade units in the building, because she would have delayed her move-in date or made arrangements to accommodate floor installation. Now, she’s stuck with carpet until she moves out.

7. What’s the unit’s maintenance history?

When Drew Wilchak, AT’s desktop support technician, moved into his current apartment, he noticed that his stove wouldn’t catch a flame. As it turned out, the gas had been shut off in his apartment while the unit was unoccupied due to a leak. Long story short, the issue took six whole months to fix(!).

Had Wilchak taken a note from many homeowners and asked about the unit’s maintenance history before he signed the lease, he might have avoided cooking on a hot plate for half a year and the headaches of coordinating with his management company. Knowing if the unit has had any problems in the past or if it’s been awhile since it’s seen maintenance can help you prevent future inconveniences (or pass on the unit if it seems problematic!)

8. What are the average cost of utilities for summer and winter?

And here’s my own regret! Who would have known that while having central air and heat is a life-saver, it’s also super expensive in the summer and winter, and suprisingly so? I surely did not, and therefore did not budget well enough for those months (eek!) I would have, though, had I taken senior product manager Jane Hunt’s advice and asked my landlord what the average cost of utilities were for the summer and winter months.

Get more advice on Apartment Therapy.

Related Links

• The Type of Renovation You Need to Save Up for, Based on Your Home’s Age

• Can Your Landlord Raise the Rent More Than Once Per Year? Here’s What Experts Say

• What Experts Say Will Happen with Home Prices Next Year

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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The Type of Renovation You Need to Save Up for, Based on Your Home’s Age

Buying a mid-century marvel or a 1970s fixer-upper sounds like a dream at first.

Just the very thought has us picturing stained-glass windows and groovy fireplace tile, but these decades-old homes often come with a tough reality: repairs. Not all houses are created equal. The type of upgrades your place will need (either now or in the near future) is largely dependent on when it was initially built. According to the 2022 U.S. Houzz and Home survey, homeowners with places constructed between 1961 and the early 2000s will invest around $20,000 in their spaces, which is 11 percent over the national median spend on a renovation. 

And while that’s a daunting figure, knowledge is power. Houzz put together a list of the types of upgrades you should expect to splurge on, based on a property’s age. Read this before you decide to put a down payment on that charming ranch or quirky split-level.

If It’s Pre-1960s

Get your ladder ready. Twenty-six percent of respondents who own a house that’s 50 years or older said they spent their resources on upgrading or replacing their roofing. Coming in at a close second, 25 percent shared they invested in new windows or skylights.  

If It Went Up Between the 1960s and 1970s

While 1970s-inspired decor might be all the rage right now, 29 and 28 percent of people living in places from this era allocated their budgets to gut kitchen and bathroom renovations, respectively. If you find yourself in this boat, we suggest swapping your dated wood cabinets and pastel sink for timeless Shaker cupboards and a value-boosting farmhouse sink.

If You Scored a Home From the 1980s or 1990s

For more recent builds, the focus is on functionality. Updating plumbing systems accounts for 26 percent of people’s spending, while 25 percent have focused on adding home security like electronic alarms and window locks.

If You’re Living in the 2000s and Later

Even new construction doesn’t always cross off every box on a potential buyer’s wish list. Fifty-nine percent of those polled plan to dedicate their savings to little luxuries, like sprucing up their outdoor space’s irrigation and lighting. Inside, they’re adding smart thermostats and integrated speakers. With enough care, your home will age gracefully.

Visit Domino for more info.

Related Links

• How To Buy a Home When You Have Student Loan Debt

• Can Your Landlord Raise the Rent More Than Once Per Year? Here’s What Experts Say

• What Experts Say Will Happen with Home Prices Next Year

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Search Homes in Oregon