The latest economic updates delivered a mixed bag. The Federal Reserve pressed pause on rate changes again, housing activity ran into some weather-related delays, and inflation came in a bit hotter than expected.
For buyers and homeowners in Everett, Lynnwood, and Mill Creek, these shifts help paint a clearer picture of where the market may be headed as we move deeper into the spring season.
For the second meeting in a row, the Federal Reserve kept its benchmark Federal Funds Rate at 3.50%–3.75%. This follows three rate cuts late last year and a pause in January.
Now, before anyone gets too excited or too disappointed — the Fed Funds Rate doesn’t directly set mortgage rates. But it does influence borrowing costs across the economy, which eventually trickles into mortgage pricing.
What’s important:
The decision wasn’t unanimous. One Fed governor supported another rate cut, highlighting the ongoing debate inside the Fed.
Here’s the balancing act:
Local takeaway:
For buyers in Everett and Lynnwood, where affordability is a key factor, and in Mill Creek, where home prices tend to run higher, this pause signals a “wait and see” environment for rates.
New home sales (based on signed contracts) fell nearly 18% from December to January, landing at a 587,000 annual pace.
That sounds dramatic — but context matters.
The previous months were stronger, and January brought some rough weather across parts of the country. When people are snowed in, they’re usually not out house hunting.
Builder confidence remains cautious as well, with the Housing Market Index at 38 — still below the 50 mark that signals positive conditions.
Builders continue to face:
What’s the real story?
When you zoom out, demand hasn’t changed much. The three-month average of new home sales is still steady compared to the prior period.
While new home sales dipped, pending home sales (existing homes under contract) rose 1.8% from January to February.
They’re still slightly below last year’s levels, but the increase is a positive sign — especially considering winter conditions in parts of the country.
What this means for Everett, Lynnwood, and Mill Creek:
These markets tend to pick up quickly once weather improves. A small bump in contracts now could signal stronger activity heading into spring.
Improved affordability and slightly lower rates earlier in the year likely helped bring some buyers back into the market.
Wholesale inflation came in higher than expected:
That’s a reminder that inflation isn’t fully under control yet.
On the labor side:
So while layoffs aren’t spiking, people who are out of work are taking longer to find new jobs.
Bottom line:
The economy is doing that awkward thing where it’s not bad… but it’s definitely not firing on all cylinders either.
It’s a lighter week for economic data, with jobless claims being the main scheduled report.
That means markets — and mortgage rates — may be more sensitive to external factors like oil prices and global developments.
Mortgage bonds dropped sharply late last week, breaking below an important support level.
Meanwhile, the 10-year Treasury yield climbed above a key threshold, suggesting rates could drift higher if momentum continues.
Since mortgage rates tend to follow Treasury yields, this is something worth watching closely.
Here’s the big picture:
For buyers and homeowners in Everett, Lynnwood, and Mill Creek, this is a “stay ready” kind of market.
Things aren’t moving dramatically in one direction — but when they do, they tend to move quickly.
At Home Right Lending, we’re a mortgage brokerage — not a lender. That means we shop multiple lenders to help you find the right loan option based on your situation.
Whether you're buying in Everett, upgrading in Mill Creek, or refinancing in Lynnwood, we’re here to help you navigate your options with clarity (and without the runaround).
Reach out today and let’s put a plan together before the market heats up.