Should You Buy Now or Wait for Interest Rates to Drop? A Portland Realtor’s Take on Affordability in Today’s Market

by Lisa Mehlhoff

How Much Can I Afford with Current Interest Rates, and Should I Wait or Buy Now?

If you’ve been watching Portland’s real estate market lately, you’ve probably asked yourself: Should I wait for rates to drop, or buy now and refinance later?

You’re not alone. With mortgage rates around the 6.5 to 7 percent range, affordability feels tighter than it has in years. But what’s actually happening in Portland right now may surprise you.

As a local Realtor who lives and works in neighborhoods like Laurelhurst, Ladds Addition, Irvington, and Sellwood, I see both the numbers and the emotions behind today’s buying decisions. Let’s break it down.

💰 What You Can Afford in Today’s Portland Market

Every 1 percent change in mortgage rates can shift your monthly payment by hundreds of dollars. For example, if you’re buying a $600,000 home, here’s the difference:

At 7% interest: about $3,992 per month
At 6% interest: about $3,597 per month
At 5% interest: about $3,220 per month

That’s a meaningful difference. So what? When rates fall, home prices usually rise because more buyers jump back in. You might save on interest later, but pay $25,000 to $50,000 more for the same home.

🕰️ The Psychology of Waiting vs. Acting

Many Portland buyers are waiting for rates to dip, but here’s what I’m seeing right now:

Inventory is tight. Homeowners with 3% or 4% mortgages are staying put, keeping supply low.
Homes priced right still sell quickly. Especially those that are updated and walkable.
Competition will rise when rates drop. When rates fall even half a point, buyers flood back in and bidding wars return.

So what? Waiting might save you on interest, but it could cost you the home that fits your lifestyle perfectly.

🔄 The Buy-Now-Refinance-Later Strategy

Many of my clients are choosing to buy now and refinance later. Lenders in Portland are offering creative programs to ease short-term costs, such as:

2-1 buydowns that lower your rate for the first two years
Seller concessions that cover part of your closing costs
Refinance guarantees that waive fees when you refinance later

Buying now lets you lock in today’s prices and reduce your rate later. As the saying goes: Marry the house, date the rate.

🏠 The Portland Perspective

Across the metro, from Beaverton and Tigard to Northeast Portland and the Pearl, buyers who act strategically are winning. They’re finding better negotiation terms, inspection credits, and less competition than in a typical spring market.

And for sellers, understanding this mindset helps you price smart. Buyers today want value and peace of mind. Homes that feel “worth it” in this rate environment are the ones that sell fastest.

✨ So What?

Here’s the takeaway:

If you’re financially ready and find a home that fits your life, buying now still makes long-term sense.
If you wait for rates to drop, you may face more competition and higher prices.
When rates eventually come down, refinancing can help lower your payment.

The key is having a Realtor who understands both the math and the mindset of Portland’s market and can help you structure a winning offer in any rate environment.

👋 Let’s Talk Strategy

If you’re wondering what you can afford or whether now is the right time to buy, let’s connect. I’ll help you navigate Portland’s housing market with clarity, care, and communication every step of the way.