If you’ve been keeping an eye on mortgage rates in the Greater Seattle real estate market, you’ve probably noticed they’ve been climbing lately. As of last Wednesday, rates hit their highest point since June 2024, and unfortunately, they didn’t stop there. Friday’s jobs report poured fuel on the fire, pushing rates even higher. Let’s break down what’s going on and what it means for buyers and sellers in the Seattle area.

What Happened?

The big news last week was the Employment Situation Report—a fancy name for the monthly jobs report. This report is like a health check for the U.S. labor market, and it’s one of the most important economic updates of the month. For Seattle homebuyers and sellers, it’s also one of the most unpredictable factors influencing the Seattle housing market.

Here’s the gist: when the economy adds more jobs than expected, it signals strength, which is great news for employment but not-so-great for mortgage rates. Traders (the folks who determine rates) pay close attention to the report’s headline number, nonfarm payrolls (NFP).

In December, economists predicted 160,000 new jobs. The actual number? A whopping 256,000—far exceeding expectations.

Why Does That Matter for Seattle Mortgage Rates?

When the economy looks strong, markets worry about inflation, which can push mortgage rates in Seattle higher. Friday’s jobs report created exactly that scenario. More jobs mean more consumer spending power, which can lead to rising prices. To curb inflation, rates tend to climb, and we’re seeing that play out in real-time.

“When the economy shows strength, mortgage rates often climb as markets anticipate inflation—creating challenges for buyers and opportunities for sellers in the Greater Seattle real estate market.”

On Friday, the average 30-year fixed mortgage rate surged to its highest level since May 2024. If you’re a first-time homebuyer in Seattle or considering refinancing, you’ve probably felt this shift firsthand.

What’s Coming Next for the Seattle Housing Market?

This week, all eyes are on another key economic report: the Consumer Price Index (CPI). CPI measures inflation and carries almost as much weight as the jobs report when it comes to influencing mortgage trends in Seattle.

There’s a mixed bag of indicators right now:

• Energy Prices: Gas prices have been creeping up, adding to inflation fears.
• Housing Costs: The “shelter” category within CPI (think rent and housing expenses) has been trending down for the last three months. That’s good news because it’s the biggest component of core inflation and has been keeping inflation in check.

Depending on how this report shakes out, we could see more volatility in rates.

What Does This Mean for Buyers and Sellers in Seattle?

If you’re considering buying a home in Seattle, now is the time to partner with a knowledgeable real estate agent and lender who can help you navigate the current conditions. For those looking to sell a home in Seattle, understanding how these shifts impact buyer demand is key to pricing and marketing effectively.

As rates move in response to economic data, it’s important to have a strategy tailored to the Greater Seattle real estate market. Whether it’s preparing your home for sale or exploring opportunities in neighborhoods like Edmonds, Mukilteo, or Snohomish, I’m here to help.

Let’s Plan for Your Next Move

The Seattle housing market can feel daunting, especially when rates are fluctuating. But with the right guidance, it’s possible to find opportunities that align with your goals.

If you’re wondering how these changes might impact your plans to buy or sell a home in Seattle, let’s connect.

Whether you’re preparing to make your first purchase, navigating selling your home in Seattle, or simply keeping tabs on the market, I’d love to chat.

Here’s to staying ahead of the curve,

Kaylynn