Interest Rates & Mortgage Strategies for Portland Buyers

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What’s Going On With Rates (Without the Jargon)

Mortgage rates climbed throughout 2023–2024 and have stayed between 6.5 % and 7 % during 2025. Rates fluctuate daily based on inflation, Federal Reserve policy and economic data. Although some economists predict modest declines, buyers should base decisions on their personal budget rather than trying to time the bottom.

Fixed vs. Adjustable: What Makes Sense in Portland Right Now

• Fixed‑Rate Mortgages: Lock your rate for 15 or 30 years. Stability is valuable in a rising‑rate environment, and you’ll avoid payment shocks. The trade‑off is a slightly higher rate compared to adjustable loans.

• Adjustable‑Rate Mortgages (ARMs): Offer lower initial rates for a set period (e.g., 5/1 ARM). With rates expected to level off, an ARM can be beneficial if you plan to sell or refinance before the adjustment period. However, if rates remain high or climb, your payment could increase.

Rate Buydowns, Points & Creative Strategies

Points (paying upfront to reduce your rate) can make sense if you plan to stay in the home for many years. Sellers may offer to pay points as a concession. Temporary buydowns (e.g., 2‑1 buydown) reduce the rate for the first two years and can ease the initial payment shock. Talk to your lender about whether these strategies align with your long‑term plans.

Refinance Plans: Don’t Marry the Rate, But Date Responsibly

The saying “marry the house, date the rate” reflects the idea that you can refinance when rates drop. However, refinancing isn’t free—closing costs and qualification standards apply. Plan for at least 24 months before refinancing to recoup costs. Build equity with regular payments and maintain a strong credit profile.

Questions to Ask Your Lender Before You Write an Offer

1. What’s my fully underwritten approval amount and monthly payment at today’s rate?

2. How do different loan types (FHA, VA, conventional) affect my payment and upfront costs?

3. What happens if rates drop before closing? Can I lock and relock my rate?

4. Are there penalties or restrictions if I pay off the loan early or refinance?

5. What are my total closing costs, and can any be rolled into the loan?

Ready to make your next move in Portland or Beaverton? I’d love to help. Give us a ring at 503‑453‑6580 or send a message to tiffanie@tdrealtygroup.com.

— Tiffanie, TD Realty Group / Direct: 503‑453‑6580 | tiffanie@tdrealtygroup.com