Eugene Mortgage Rates For First-time Homebuyers Is Still Very Low as of Today

Eugene mortgage rates have been so low for such a long time that it would be surprising if area buyers didn’t begin to take them for granted. It’s only human nature. Addressing would-be home buyers who, though qualified, remain on the sidelines, government-sponsored Freddie Mac headlined the question, “If Housing Is So Affordable, Why Doesn’t It Feel That Way?”

The article appeared in Freddie Mac’s Insight publication which noted that right now housing isn’t just affordable it’s “near record”accessible! HUD’s Housing Affordability Index has been rising for over 35 years, interrupted only briefly by the housing crisis of the mid-2000s. It hasn’t entirely sustained the all-time affordability peak but is holding steady well within hailing distance of that 2012 record.


Eugene mortgage rates have cooperated nicely, continuing to go with the national average. For 30-year fixed-rate mortgages, U.S. rates averaged 4.20% (Mortgage Rate Today)

Of course, the 15-year and adjustable rate offerings were also lower.

With that kind of good news, why do the media report “affordability issues” (Mortgage Daily News) and even an “affordability crisis” (PBS)? The answers dwell in both perceptions and some underlying realities.

There’s a reality in the widespread phenomenon of a shortage of housing supply. Eugene listings may show some properties that are not yet listed, but the national number of homes up for sale remains “very tight.” The echoes from 2009, when new housing starts hit rock bottom, are still affecting. In that year, housing starts barely equaled a third of the previous averages. Even though current construction levels are nearly back to normal, they’ve yet to make up for that shortfall.

Eugene mortgage rates may be unbelievably low, but when potential local applicants “mistakenly believe they must have a 20% down payment to obtain a mortgage,” that stopped them from even trying to buy a house.  Some otherwise-qualified buyers who don’t know that more than half of today’s borrowers make smaller down payments.

Not mentioned in the Insight article is another psychological factor that could explain two things at once. In The New York Times’ “Politics” section, a commentary sought to explain why the Federal Reserve wasn’t acting to boost interest rates. According to the author, the cause lay with inflation rates, which remain low “and that’s a problem” for Fed rate-makers.

The reason higher inflation would be a good thing (despite common sense) is that it makes consumers feel good when their paychecks go up. “A little inflation can brighten the economic mood…people enjoy the illusion.”The upshot here may be that even though today’s extraordinarily low Eugene mortgage rates create actual affordability, some well-qualified customers may feel safer staying on the sidelines until the economy starts generating go-go economy headlines. It’s an ironic reality that by the time those headlines materialize, actual affordability might have already begun to slip away.

If you’ve been contemplating the wisdom of your own Eugene home acquisition, let us show you some excellent properties…and some great numbers! Contact one of our Eugene real state Agents.