Bene's Blog • buyers • market news • Sellers • October 16, 2025

Housing Market Slows as Government Shutdown Continues

by Bene Foley

More than two weeks into the federal government shutdown, the U.S. housing market is showing clear signs of stagnation. Both buyers and sellers appear hesitant to make moves amid ongoing uncertainty in Washington, D.C., and this slowdown is expected to persist until the political impasse is resolved.

For the week ending October 11, national real estate activity—both listings and sales—remained muted, according to Realtor.com’s latest housing trends report. Homes are staying on the market longer than they did a year ago, and prices have largely flattened, suggesting increased inventory and reduced competition.

Economists at Realtor.com anticipate that overall housing activity will remain sluggish until lawmakers reach an agreement to reopen the government. Areas dependent on the now-suspended National Flood Insurance Program, which is necessary for many home transactions in flood zones, may experience a complete pause in closings.

Despite the overall cooling trend, some regions are holding steady. Select markets in the Midwest and Northeast—where demand is high but supply remains tight—continue to favor sellers, with buyers still facing competitive conditions.

New Listings and Pricing Trends

New listings last week were up 4.6% compared to the same period in 2024, showing only a modest increase. Data from the September Monthly Housing Report revealed a 1.2% annual decline in newly listed properties, highlighting ongoing hesitation among homeowners to put their houses up for sale.

Inventory levels continue to rise, up 15.1% from a year ago, marking the 100th consecutive week of annual gains. With 1.1 million active listings nationwide, the market has seen more homes accumulating rather than turning over quickly. The typical property now remains on the market for about 63 days—four days longer than last year—returning to pre-pandemic norms.

The slow pace of sales has led many sellers to reduce asking prices in hopes of securing offers before year’s end. Although the national median list price rose slightly, up 0.4% from the previous year, the price per square foot dipped by 0.5%, marking the sixth consecutive week of decline.

This softening in price per square foot suggests that underlying home values are being pressured by weak sales activity, even as overall price levels appear stable.

Uncategorized • September 17, 2025

Buyers Rush for Loans as Mortgage Rates Fall

by Bene Foley

Mortgage rates saw their biggest drop in a year last week, setting off a wave of activity in the housing market. Loan applications jumped to their highest level in more than four years as buyers moved quickly to secure lower borrowing costs.

Applications for home purchases climbed 7% compared with the previous week and were 23% higher than the same time last year, according to the Mortgage Bankers Association. Refinancing also gained ground as more homeowners looked to take advantage of the rate decline.

The drop followed a dip in Treasury yields, which often influence mortgage rates, as concerns about a slowing labor market grew. While rates are still higher than they were a year ago, they have eased from earlier peaks this year, offering some relief to buyers. Many have turned to adjustable-rate mortgages, which typically start with lower payments than standard fixed-rate loans.

The Federal Reserve is scheduled to meet on September 17 and is expected to reduce its short-term benchmark rate. Though the Fed’s decisions do not directly set mortgage rates, they can shape overall lending conditions. A weakening job market may also prompt several rounds of rate cuts in the months ahead, which could further pull mortgage rates down.

Economists say lower rates could help unlock more demand after a slow summer, when elevated borrowing costs kept many buyers out of the market. A larger pool of qualified buyers could provide a boost to home sales moving into the fall.

Current Averages (week ending Sept. 11, 2025):

30-year fixed-rate mortgage: 6.35% (down from 6.50% the week prior; 6.20% one year ago)
15-year fixed-rate mortgage: 5.50% (down from 5.60% the week prior; 5.27% one year ago)

Bene's Blog • market news • August 28, 2025

What Rising National Debt Could Mean for Housing

by Bene Foley

More Debt, More Expensive Borrowing

The recently passed One Big Beautiful Bill Act (OBBBA) is set to add trillions of dollars to the national debt over the next decade. With the government borrowing more, interest rates on U.S. debt are expected to climb. And when Treasury rates rise, borrowing costs across the economy—especially mortgages—tend to go up too.

Economists expect the law to raise the 10-year Treasury yield by about half a percentage point in the next few years, and possibly more than a full point over the long term. Since mortgage rates usually track Treasury yields, this puts more pressure on an already strained housing market.

A Housing Market Stuck in Neutral

Mortgage rates have already jumped from record lows of under 3% in 2020 to well over 7% by 2023. That spike froze the housing market, cutting existing home sales down to levels not seen since the 1990s. High prices and high rates have combined to keep many owners from selling and buyers from entering the market.

While OBBBA offers small tax perks—like a higher cap on state and local tax deductions—the bigger effect is higher long-term borrowing costs. For homebuyers, that likely means mortgage rates will stay elevated for years.

A Small Silver Lining

There is one potential bright spot. Recently, the gap between mortgage rates and 10-year Treasury yields (called the “spread”) has started to shrink. During the pandemic and its aftermath, that spread ballooned because lenders worried about borrowers refinancing if rates dropped. Now that rates look like they’ll stay “higher for longer,” lenders are less concerned about prepayment risk.

If this trend continues, mortgage rates might not fall back to 3%, but they could ease down closer to 6%, even as Treasury yields move higher.

Bottom Line

The U.S. is entering an era of permanently higher borrowing costs, and the new debt-heavy legislation only reinforces that. For the housing market, this is a double-edged sword: mortgages are likely to remain expensive, but the shrinking spread over Treasuries could provide a little relief.

Bene's Blog • Home Loans • homeownership • market news • August 19, 2025

What Could Happen if Fannie Mae and Freddie Mac Go Public Again?

by Bene Foley

The Big News

Fannie Mae and Freddie Mac—two of the most important companies behind U.S. home loans—might be taken public again by the end of 2025. Reports say the plan could value them at $500 billion, with the government raising around $30 billion. Their stock prices jumped about 20% on the news.

Both companies have been under government control since the 2008 financial crisis, when they were bailed out to keep the housing market afloat.

Why It Matters for Mortgage Rates

For everyday homebuyers and sellers, the main question is: Will this make mortgages more expensive?

If the companies are privatized without the government backing their loans, experts say mortgage rates could rise by 0.6% to 0.9%.
If the government keeps its guarantee in place, rates could actually stay the same or even go down, depending on how fees are handled.

In short: it all depends on the deal’s structure.

Risks and Rewards

If the government continues backing Fannie and Freddie, it could help keep rates lower, but it also means taxpayers could be on the hook if the housing market crashes again.

Industry groups, like the National Association of Realtors, have pushed for a “utility-style” model: one where the government guarantees loans but limits how much profit the companies can make, to reduce risk.

Political Moves Behind the Scenes

The Trump administration has reshaped the leadership at both companies, installing loyalists on their boards. This suggests the government has strong influence over whatever plan moves forward—whether the two firms are merged into one, kept separate, or sold off gradually.

A Look at the Numbers

Fannie Mae backed about $64 billion in purchase loans last quarter.
Freddie Mac supported $76 billion, with more than half going to first-time buyers.
Both companies are still profitable, but their recent earnings dipped as they set aside more money for possible future losses.

Bottom Line

For homeowners and buyers, the possible public offering of Fannie Mae and Freddie Mac could shift mortgage rates depending on how much government support remains. The outcome could either help keep loans affordable—or add extra costs for borrowers.

Bene's Blog • garden • homeownership • August 12, 2025

When Landscapes Hurt Your House

by Bene Foley

I have been trying to get my husband to take out the shrubs that line the edges of my home. He wants to keep them because a) they protect the paint and siding from direct sunlight on the south side, b) they are green and lush, and c) they conceal the front porch enough that people won’t be tempted to steal packages off our porch. The Wall Street Journal just published an article that supports my argument. Here is is, in a nutshell:

Key Takeaways

Foundation-Risky Landscaping: Planting shrubs and hedges close to your home’s foundation may seem charming—but it can cause serious damage over time. Root systems retain moisture that can lead to mildew, moisture intrusion, blocked vents, and even invite termites to nest behind the façade.
Vulnerability to Wildfire: In some regions, dense vegetation against the foundation also increases the home’s risk of wildfire damage.
Expert Solutions: The columnist consulted with horticultural and design experts, who recommend thoughtful alternatives—like planting with proper setbacks or choosing landscape designs that minimize foundation and fire risk.

Practical Recommendations

Avoid placing shrubs or hedges directly next to your foundation to reduce moisture buildup and enhance airflow.
Leave a buffer zone between plantings and the house to discourage pests and moisture damage.
Consult professionals or landscape designers to select foundation-friendly and fire-safe plantings.

Note the photo above: This builder, in an attempt to add curb appeal, planted shrubs that are pretty much guaranteed to cause problems in the future!

I read this and wanted to know what a good buffer zone would be. The internet is full of advice–all different. And the main problem I have with any of the suggestions is that when someone plants something 2 or 3 feet from the foundation (as many sites suggest), as years go by the shrub gets bigger and bigger, roots growing closer and closer to your foundation. So, my inexpert advice? Put in plants that don’t get big with age. If you insist on sturdier bushes, plant them so that even their branches at maturity don’t touch the house. This means at least 5 feet or so depending on the shrub or tree you choose.

Bene's Blog • buyers • market news • Sellers • August 5, 2025

Mortgage Rates Dip Slightly, But Housing Market Remains Slow

by Bene Foley

The average interest rate on a 30-year mortgage has ticked down slightly, offering small relief for those looking to buy a home. Rates fell to 6.72% this week, a small drop from last week’s 6.74%, bringing them back to levels seen earlier this month. One year ago, rates were almost exactly the same.

Homeowners looking to refinance also saw a small improvement. The average rate for a 15-year mortgage dipped to 5.85% from 5.87% last week. This time last year, it was 5.99%.

While these small drops are welcome, mortgage rates are still high compared to the lows seen during the pandemic. Elevated borrowing costs have continued to slow home sales, a trend that began back in 2022 when rates started rising.

Mortgage rates are influenced by several factors, including the Federal Reserve’s interest rate decisions and how investors in the bond market view the economy. One of the key indicators lenders use is the yield on the 10-year Treasury note, which recently slipped to 4.34%.

Although the Federal Reserve left its main interest rate unchanged this week, there’s still uncertainty about what will happen in the coming months. Inflation remains above target, and the job market continues to show strength, which could delay any rate cuts.

So far this year, the average 30-year mortgage rate has hovered near its peak of just over 7%, reached in January. The lowest point came in April when it briefly dropped to 6.62%. Forecasts from housing experts suggest that rates may gradually fall to around 6.4% by the end of the year, but not enough to significantly boost home sales.

Recent data points to a continued slowdown. Pending home sales—contracts signed but not yet finalized—fell 0.8% in June and are down 2.8% compared to the same month last year. Since final sales often occur a month or two after a contract is signed, this may indicate a further drop in upcoming closings.

The sluggish housing market is reflected in the national homeownership rate, which has stalled at around 65%. This is the lowest level since 2019 and below the long-term average of about 66%.

Even with slightly lower rates, mortgage applications dropped 3.8% last week, reaching their lowest point since May. Despite this decline, applications were still higher than they were a year ago.

Uncertainty around interest rates, inflation, and the job market continues to weigh on homebuyers, leaving many hesitant to make a move.

I work with mortgage brokers that offer rate discounts for my clients (whether on the buy side or the selling side). This can reduce your mortgage to the rates you have been waiting for. Once again, the Portland market continues to be hyper-localized, so feel free to reach out if you have any questions about your neighborhood.

Bene's Blog • Sellers • July 8, 2025

New SALT Deduction Expansion: What the Higher Cap Means for Taxpayers

by Bene Foley

On July 4, 2025, the President signed into law the domestic spending and tax reform package known as the One Big Beautiful Bill Act.

One piece of this legislation is the expansion of the state and local tax (SALT) deduction. Many taxpayers are wondering what a higher cap could mean for their wallets. This change will quadruple the current SALT deduction limit for five years starting in 2025 — a significant shift with uneven impacts across income brackets and regions. Here’s a clear look at what the change would do and who stands to benefit the most.

Background:
The SALT deduction is a tax break that lets taxpayers deduct what they’ve paid in state and local taxes (like income tax, property tax, and sometimes sales tax) from their federal taxable income.

In 2017, the Tax Cuts and Jobs Act capped this deduction at $10,000 per year for individuals or married couples filing jointly. This cap has been controversial, especially in high-tax states (like New York, New Jersey, and California) where taxpayers often pay much more than $10,000 in state and local taxes.

What this new provision does:
The new bill will temporarily raise the cap — quadrupling it — for five years starting in 2025. So instead of being limited to $10,000, taxpayers can deduct up to $40,000 in state and local taxes.

In short:
From 2025 through 2029, taxpayers can now deduct up to $40,000 in state and local taxes paid each year, reducing their federal taxable income and potentially lowering their federal tax bill. After five years, the cap will revert back to $10,000 unless extended or changed again.

Who benefits?

📍 1. Higher-income households in high-tax states

The people who get the biggest boost are upper-middle and high-income taxpayers who:

Pay significant state income taxes, property taxes, or both.
Live in states with high tax rates (like California, New York, New Jersey, Connecticut, Massachusetts, and Oregon).
Have enough total deductions to itemize instead of taking the standard deduction.

Example:
A couple in New Jersey who pays $25,000 in state income taxes and $15,000 in local property taxes currently can only deduct $10,000 of that from their federal income taxes. They can now deduct the full $40,000 instead of being limited — lowering their taxable income by an extra $30,000.

📍 2. Homeowners with high property taxes

Even in states with moderate income taxes, people who own expensive homes (and pay high property taxes) benefit. This is why many suburban homeowners in states like Illinois, Texas (which has high property taxes but no state income tax), or parts of the Midwest could see savings too — if their total state and local tax bill pushes them above the old $10,000 cap.

📍 3. Taxpayers who already itemize deductions

The SALT deduction only matters for people who itemize deductions on their federal taxes instead of taking the standard deduction (which is about $14,000–$29,000 for 2024, depending on filing status).

Higher earners are more likely to itemize because they have bigger deductions (mortgage interest, charitable donations, medical expenses, plus SALT).
Middle- and lower-income taxpayers usually take the standard deduction, so they wouldn’t see much impact.

Who doesn’t benefit much?

Renters in low-tax states.
Homeowners whose total SALT bill is already below $10,000.
Taxpayers who don’t itemize.

✅ Big picture

The main benefit goes to wealthier households in high-tax, often coastal or urban states — which is why the SALT cap has been politically contentious. Critics argue raising the cap mostly helps the well-off, while supporters say it protects taxpayers from “double taxation” and helps keep high-cost states affordable for middle- and upper-middle-income professionals.

Bene's Blog • buyers • market news • Sellers • July 1, 2025

What Housing Inventory Trends Mean for Homebuyers and Sellers

by Bene Foley

When it comes to real estate, what’s happening on one street might look entirely different just a few blocks away — and that’s especially true here in Portland, Oregon. Housing inventory trends continue to shape how buyers and sellers approach the market, and understanding these shifts can help you plan your next move wisely.

In Portland, we’re seeing a clear split: well-maintained homes that require little to no updating are attracting eager buyers right away. These move-in-ready properties often sell the first weekend they’re listed and can bring in multiple offers, sometimes above the asking price. On the other hand, homes that need some updates or minor repairs tend to linger on the market much longer — sometimes anywhere from a month to three months — and usually receive offers below the initial list price.

These patterns mirror broader trends nationwide, but each Portland neighborhood has its own micro-market with unique dynamics. For buyers, this means being prepared to act quickly and make strong offers on turnkey homes, while sellers with properties needing work may need to adjust expectations or consider making updates before listing.

Whether you’re hoping to buy or sell, keeping an eye on local inventory shifts — and knowing where your property fits in — can help you stay competitive and make the best decisions for your situation.

Uncategorized • June 17, 2025

What Housing Inventory Trends Mean for Buyers and Sellers

by Bene Foley

If you’re thinking about buying or selling a home, one factor that can have a major impact on your experience is housing inventory—the number of homes available on the market. Inventory affects everything from pricing to how quickly homes sell, and even small changes can shift the balance between buyers and sellers.

But remember: real estate is local. Trends you hear about on the news might not match what’s happening in your specific neighborhood or price range.

Why Inventory Matters

The housing market is shaped by the classic rules of supply and demand. When there are fewer homes for sale, competition among buyers can drive prices up. On the flip side, when more homes are listed, buyers often have more negotiating power, which can lead to better deals and more flexible terms.

Short-Term Changes vs. Long-Term Trends

You’ve probably noticed that housing activity varies by season. Fewer homes tend to go up for sale during the holidays, but there are usually fewer buyers too, which keeps things fairly balanced. Spring, by contrast, often brings both a wave of new listings and renewed buyer interest.

But there are also larger patterns to watch. For instance, when inventory remains low for an extended period, prices tend to rise and stay elevated. Reversing that trend typically requires a steady increase in homes for sale.

What This Means for Buyers

In a market with limited inventory, some buyers decide to wait in hopes that prices will come down or more options will appear. Others feel the pressure to act quickly and make strong offers to beat the competition. If you’re buying, your level of motivation, financial readiness, and ability to act decisively all come into play.

Being strategic is key—especially if you’re competing with multiple buyers. You may need to be flexible on things like closing timelines or offer terms. It helps to understand what’s driving competition in your local market.

What This Means for Sellers

If there are more homes on the market, buyers will have more choices—and sellers may need to work harder to stand out. That could mean pricing your home more competitively or offering extras, like help with closing costs or a rate buydown, to attract serious buyers.

If inventory is tight, though, sellers may benefit from faster sales and stronger offers—especially if their home is priced appropriately and well-prepared for showings.

Other Factors at Play

Housing inventory isn’t the only thing influencing the market. Interest rates, job stability, and overall economic confidence all play a role in how buyers and sellers behave. For example, when mortgage rates rise, some buyers step back—but in growing areas like Southern Nevada, strong local demand can keep the market active even when other regions slow down.

Right now, we’re seeing an increase in homes coming to market. If you’re selling, that means paying close attention to pricing and being prepared for more negotiation. New home builders offering incentives can also create more competition, so it’s worth knowing how your listing compares.

The Takeaway

Whether you’re buying or selling, understanding housing inventory gives you an edge. And while national trends can offer some insight, the most important information is what’s happening in your area—your neighborhood, your school zone, your price point.

I help clients stay informed so that they can make confident decisions in today’s shifting market.

Bene's Blog • home ownership • homeownership • June 4, 2025

Oregon Lawmakers Set Ambitious Goal to Expand Homeownership by 2030

by Bene Foley

In an effort to promote economic stability and generational wealth, Oregon legislators have approved a plan to significantly increase homeownership across the state. The goal is to help more than 30,000 additional residents become homeowners by the year 2030.

House Bill 2698, passed by the Senate with a 23-6 vote, establishes a target homeownership rate of 65% by the end of the decade. The bill also sets additional growth benchmarks of 1.65% for each of the following 5-, 10-, and 15-year periods. To monitor progress, it requires the Oregon Housing and Community Services Department to create a public dashboard, which will include data broken down by race and ethnicity to track disparities and ensure equitable outcomes.

Current data shows that homeownership in Oregon stands at 63.4%, placing the state 39th nationwide. Racial disparities remain significant: a higher percentage of white and Asian residents own homes compared to Black, Hispanic, and Native American residents.

Oregon’s housing challenges have developed over time due to limited new construction, population growth, and wage stagnation. Today, more than 240,000 low-income households exist in the state, but only around 113,000 affordable housing units are available to them.

While the bill doesn’t attempt to address every factor contributing to the housing crisis, lawmakers see it as a foundational step for guiding housing policy moving forward. By setting measurable objectives and tracking outcomes, the state aims to more effectively plan and prioritize housing efforts.

The bill passed the House earlier by a wide margin and now heads to Governor Tina Kotek for final approval. If enacted, it would take effect immediately.

Debate Over Supply and Policy Tools Continues

Although most lawmakers supported the initiative, some raised concerns that setting goals without directly increasing the housing supply will not be enough to address the scale of the problem. A state-commissioned report released in January estimated that Oregon needs to build nearly 29,500 homes annually—primarily in the Portland metro and Willamette Valley regions—to meet current demand.

Critics of the bill expressed skepticism that progress can be made through tracking dashboards and benchmarks alone. They argued that meaningful solutions will require policy changes that make it easier to build more housing across the state, especially in communities that have historically resisted new development.