
When talking about this, some people ask me if these higher interest rates will cause home prices in the Portland metro area to go back down. Higher interest rates will definately create a headwind for housing prices (most buyers buy the payment, not the house price, and a higher interest rate will increase the monthly payment). At the same time, however, economic growth in Portland has been increasing, its unemployment rate decreasing, and the general mood of the market is more optimistic. Further, with our current level of low inventory (3.1…
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