Adding to the uncertainty: those stubborn interest rates

Here we go again. In the last 2 weeks, mortgage rates have risen over .75% – taking us back to above 7%. Thus my hesitancy to predict what happens next kicks in at a higher level.

We know higher rates bring fewer buyers to the table. Just like I noted above. This has held true as we’re seeing fewer offers in April.

But, there is still a demand for homes because there hasn’t been enough inventory. What will happen as more inventory comes on line? I think that homes prices will hold this year. We might see a bit of a dip fall into winter as we have the past couple of years, but even with that happening year-over-year home prices increased 19% on the Eastside and 14% in King County in 2024.

The Fed meets again on April 30th, but no one expects they are going to make much of a change right now – they’ll want to wait and see what happens with inflation. If that holds true, rates aren’t coming down anytime soon.

So if you’re a buyer and think it is a good idea to wait, with all due respect, I think you are making a mistake. Interest rates aren’t going anywhere and any increase in home values diminish any savings you think you may be gaining by waiting.