Ask most people to weigh in on the current mortgage market, and the response will likely be that the market is challenging. Rates are high, making it more difficult to break into the already traditionally tough Bend real estate market.
“We’re stuck in a high interest environment,” states Sam Boyer, senior mortgage advisor and branch manager at Fairway Independent Mortgage Corporation in downtown Bend. But he’s quick to point out that when it comes to mortgages and real estate, it’s all relative. “Of course, it depends on who you talk to.”
The additional percentage applied to a loan on a home — or the mortgage rate — is currently sitting in the mid-6% range. Zoom out and look from a historical perspective and one sees that rates have fluctuated dramatically over the past decades. “Those who remember the 1970s and 1980s, when rates soared to 18%, have a long-term perspective on how bad things truly can be,” Boyer says.
Wedged in more recent memory, however, is 2020 and 2021, when mortgage rates dropped into the 2% to 3% range. This relatively recent dip is why most people now feel the pinch of current rates. That drop, however, explains Boyer, was akin to many national matters that were radically affected by the unprecedented impacts of COVID. The boomerang a couple of years later sent rates even higher than they are today, into the 7% and 8% range — yet it’s tempting to look back to the very low rates and hope that they will return. “If you look at just within the past decade or two, rates now are relatively high,” concludes Boyer.
Higher mortgage rates have many outcomes, one of which is that they force higher mortgage payments. That in turn makes it tougher for buyers to qualify for a loan in the first place, which slows transactions. “Higher rates mean a greater barrier to entry to the market,” said Boyer. “Higher rates mean the real estate market is more locked up.”
The impact of higher rates hits both first-time buyers, trying to break into the market for the first time, and more established residents, who might otherwise consider a move within market. “Those who bought when rates were low, and have a current mortgage of 2%, look at 7% rates and say, ‘why would I sell and buy? I’ll just stay put.’ That’s another aspect of higher rates that keep the market stalled.”
But it’s not all bad news, said Boyer. He points to the boom in Bend housing geared toward more affordable price points, including housing developments cropping up on the east side of town, as preventing the local market from a total standstill. “That’s a unique aspect of Bend compared to some other parts of the country,” he said. “There are a lot of homes being built at a price point that is helpful for first-time homebuyers.”
The consensus among economists in the mortgage industry, said Boyer, is that rates will continue to drop, although it’s also true that there is much uncertainty in the current environment. “Interest rates were slowly coming down from a couple of years ago, but recent developments in Iran have pushed rates back up. That’s not helping. However, the federal reserve says that rates need to come down. The question is, at what rate, and to what degree, will that occur.”
In the meantime, a slower market can be a good time to buy, said Boyer. With competition down, the opportunity to get into a good house is higher — unlike when rates were low during COVID and homes were selling in a matter of days (or hours!) and often for more than asking price. Boyer tells clients not to overlook the current market. “If you might be able to stomach a higher interest rate loan for a year or two, until rates drop and a refinance makes sense, now is a good time to buy,” he said. “Don’t be afraid that your payment today is your forever payment.”
To that end, Boyer’s company offers current clients cost-free refinancing in the future to help make moving forward now more palatable. He also points to incentive programs that are available, like tools that allow buyers to leverage their credit to reduce interest rates — called a “rate buy down,” that might help people break into the market.
While economists predict rates dropping, Boyer explained that from a bigger perspective, a slower drop is healthier. “The federal reserve’s job is to drop rates slowly, so as not to push inflation higher than necessary,” he explains. “They can’t force anything without consequences.”
In 15 years in the industry, Boyer has seen rates rise, drop with COVID, and then rise again. “There’s something to be said for slow adjustments,” he said. “For the economy at large, I’ve seen the negative effects of change that happens too fast.”
This article appears in the Source June 4, 2026.
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