Inflation Is Increasing and Making Home Ownership More Expensive | Take Me Home | Bend | The Source Weekly - Bend, Oregon
The Source Weekly’s reporting is made possible by the power of your support. Be a part of it!
Pin It

Inflation Is Increasing and Making Home Ownership More Expensive 

  • Creative Commons Image

As was expected, the Federal Reserve decided to raise interest rates by a quarter of a percentage point last week. This puts the federal funds rate at its highest level since 2008. This could mean higher interest rates on bonds and mortgages and lower returns on real estate investment. Because mortgage interest rates typically follow the 10-year Treasury yield, the 30-year mortgage rate could soon see an increase.

According to a recent article by the National Association of Realtors, inflation is being fueled by the recovery in oil prices and rent increases exceeding 3 percent annually for the past four years, and housing shortages and home sale prices rising even more. The article points out that two-thirds of the country is seeing higher prices today than during the housing bubble era. Without relief for inventory shortages, housing costs are anticipated to continue their rise.

The good news is that interest rates are still quite low and will not prevent home ownership for most buyers. Locally and nationally, rising building costs and construction labor shortages are probably more significant factors in home affordability.


About The Author

Nick Nayne, Principal Broker

Principal Broker at The Broker Network Realty in Bend, OR. Over 12 years experience in Real Estate working with buyers, sellers and investment properties.
Pin It

Speaking of Central Oregon Real Estate, bend Real Estate


Subscribe to this thread:

Add a comment

Readers also liked…

  • Pricing Your Home to Sell

    Pricing Your Home to Sell

    How to get it right in a challenging market
    • Jun 8, 2022
Today | Sat | Sun | Mon | Tue | Wed | Thu
SFF Presents: FY5 & Eli West at Fir Street Park

SFF Presents: FY5 & Eli West at Fir Street Park - Fir Street Park

Sat., June 25, 7-9 p.m.
Submitting an event is free and easy.

Newsletter Signup

Get Central Oregon daily news
directly in your inbox

Get Social

Latest in Take Me Home

More by Nick Nayne, Principal Broker

Want to advertise with us?

For info on print and digital advertising, >> Click Here

© 2022 LAY IT OUT INC | 704 NW GEORGIA AVE, BEND, OREGON 97703  |   Privacy Policy

Website powered by Foundation