Why homebuyers in Central Oregon shouldn’t let higher rates keep them on the sidelines.

If you’ve been watching mortgage rates climb and wondering if now is still a smart time to buy, you’re not alone. It’s one of the top concerns for buyers in 2025, especially here in Central Oregon where demand remains high.

So, is buying still worth it when interest rates are up?

💡 The Key Principle: “Marry the House, Date the Rate”

This real estate saying has never been more relevant. The idea is simple:

• Buy the right home when you find it

• Refinance your mortgage later if interest rates drop

You lock in your dream home now — in the neighborhood you want, near the schools or trails you care about — and revisit your financing when the market shifts. If you wait for the “perfect rate,” you may miss the perfect home.

📈 Why Waiting Might Cost More Than You Think

In Central Oregon, prices are still slowly increasing even in a higher-rate environment. Inventory remains limited in popular areas like Bend, Sisters, and Tumalo, which puts upward pressure on prices. That means:

• Home values could rise faster than rates fall

• You may be priced out of neighborhoods if you wait too long

• Competition could increase when rates drop, making bidding wars more likely

Buying now could mean paying more in interest upfront — but locking in a lower home price.

🔁 Refinance Opportunities Are Expanding

Many lenders are now offering refinance incentives, including:

• Low or no closing-cost refinance options within 12–24 months

• Rate buydown programs to ease short-term payments

• ARM loans with fixed lower rates for 5–7 years

Talk to your lender about options to adjust your loan in the future without starting over financially.

🏡 What You Gain by Buying Now

Even with higher rates, purchasing in 2025 comes with benefits:

• Build equity sooner — Stop renting and start building wealth

• Secure a home before prices go up further

• Have more leverage in negotiations while some buyers are on the sidelines

If you can find a home that fits your budget and lifestyle, it can still be a smart long-term move, even if your mortgage rate isn’t perfect.

🛠️ Pro Tip: Focus on Monthly Payment, Not Just Rate

Interest rates are just one factor in affordability.You can often improve your overall payment by:

• Choosing a smaller home or location just outside the core (like Redmond or La Pine)

• Reducing debt to qualify for better terms

• Exploring rate buydowns or seller credits for closing costs

Yes, interest rates are higher than they were during the pandemic. But Central Oregon real estate continues to attract buyers for its lifestyle, recreation, and long-term investment potential. If you're financially ready and find a home you love, it may be worth buying now — and planning to refinance later.

Still unsure? Let’s talk about your options and run real scenarios based on your budget.

FAQs

Q: Should I wait to buy until interest rates come down?

A: Not necessarily. Home prices in Central Oregon are still rising, and waiting could mean paying more later — even if rates drop. You can refinance when rates improve, but you can’t go back and buy a home at today’s price.

Q: What’s the average interest rate right now in 2025?

A: Rates in mid-2025 are fluctuating around 6.5–7.5%, depending on loan type, credit score, and lender programs. That’s higher than pandemic-era lows but still historically moderate.

Q: Can I refinance later if rates drop?

A: Yes! Most buyers plan to refinance when rates come down. Some lenders are even offering refinance credits or low-cost programs for buyers who close now.

Q: How do I know if I can afford a home with today’s rates?

A: A good lender can help you understand your monthly payment options and what price range works for your budget. Consider your full financial picture — including income, debts, and savings.

Q: Are there mortgage programs to help with high rates?

A: Yes — you can look into:

• 2-1 buydowns (lower rates the first two years)

• Adjustable-rate mortgages (ARMs) with fixed periods

• Down payment assistance or credit union programsTalk to a lender who’s familiar with Central Oregon market trends.

Q: What’s the long-term benefit of buying even at a higher rate?

A: You start building equity now — which grows over time. Plus, in Central Oregon, values tend to increase steadily due to demand and limited housing inventory. Waiting could cost more in the long run.