Common Mortgage Rate Myths — And the Facts

In Portland’s current market, potential homebuyers are inundated with opinions and myths about mortgage rates. As a local real estate expert at Cascade Hasson Sotheby’s International Realty, I would like to clear up some common misconceptions.

First, the idea that you must wait for the “perfect” interest rate is misleading. Mortgage rates move on a wide variety of macroeconomic factors, including inflation, employment, and the movements of the bond market—not just on what the Fed says or does. Sometimes rates actually rise after a Fed rate cut, and falling rates aren’t guaranteed with every economic update.

Second, don’t let myths about down payments hold you back. Many buyers believe that 20% down is required, but plenty of loan programs offer options with as little as 3-5% down for qualified borrowers.

Finally, remember that you have options and guidance. Rates are still comparatively low by historical standards, there’s strong buying activity, and opportunities remain—especially when you’re working with a local real estate professional who understands how these market forces work. The key is making informed decisions based on logic, not speculation or outdated myths. 

No one has the magic "home interest rate crystal ball." (*editor's note: if you can locate one, I am interested.) So we do not know what will to happen in 2026. But if you need to buy or sell, consider focusing on your new monthly payment (buyers) or what you will net (sellers). These could be far be more impactful data points than another .25% drop in rates. 

-Matt Smith, Real Estate Advisor | Cascade Hasson Sotheby's International Realty