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August brought a big shift in the financial world, and if you’re thinking about buying a home in Everett, Mill Creek, or Mukilteo, you’ll want to pay attention. The Federal Reserve made its first interest rate cut of the year—something that could directly impact mortgage affordability in our local housing market. Pair that with cautious optimism from homebuilders and changing retail trends, and you’ve got a recipe for important shifts that could affect your next move.
The Federal Reserve lowered its benchmark Fed Funds Rate by 25 basis points, setting a new target of 4% to 4.25%. Translation? Borrowing just got a little cheaper. While the Fed Funds Rate doesn’t directly control mortgage rates, it sets the tone for lending costs across the economy—including the loans homebuyers rely on.
In Everett, Mill Creek, and Mukilteo, where buyers often balance rising prices with affordability concerns, even a small rate cut could make a big difference. Lower borrowing costs could mean more purchasing power and better chances of securing that dream home before the fall market cools.
Homebuilders are holding their ground, even as construction numbers cooled in August. The National Association of Home Builders reported builder confidence holding steady, with future sales expectations ticking upward.
For local buyers, that’s cautiously good news. Builders in Snohomish County (think Mill Creek neighborhoods or new developments near Everett and Mukilteo) are still moving forward with projects, hopeful that lower rates will bring more buyers back into the market by the end of the year.
August saw an 8.5% dip in housing starts nationwide, and permits also fell to their lowest point in five years. Locally, that could mean fewer new homes available in the short run—especially in hot spots like Mukilteo’s waterfront area or Mill Creek’s planned communities.
The bottom line? While supply has slowed, demand in Everett and nearby cities is expected to rise as rates ease. If you’re waiting for more inventory, patience will be key.
Despite economic jitters, retail sales actually beat expectations, climbing 0.6% in July. The “control group,” which feeds into GDP growth, rose 0.7%. Translation for locals: people are still out shopping, dining, and spending in communities like downtown Everett, Mill Creek Town Center, and Mukilteo’s waterfront shops. That consumer confidence helps keep our local economy stable, which in turn supports housing demand.
Jobless claims dropped after a recent spike, but continuing claims remain high, signaling that while people are finding fewer new layoffs, it’s still taking longer for folks to get back into work. That’s something to watch in Snohomish County, where Boeing, tech employers, and small businesses all play big roles in the job landscape.
For buyers in Everett, Mill Creek, and Mukilteo, a steady job market is key to confidence when making big purchases like a home.
Lower rates = more affordability for mortgages in our area.
Builder optimism means new homes will keep coming, though supply may remain tight.
Local demand will likely grow if rates keep easing, so competition could heat up again.
If you’re a buyer in Everett, Mill Creek, or Mukilteo, this is your signal to start planning. Rates may not stay this low forever, and acting before fall could give you the edge.
Thinking about buying or refinancing in Everett, Mill Creek, or Mukilteo? Let’s talk. Our team at Home Right Lending specializes in finding the right loan options for your situation—whether you’re a first-time buyer, a veteran using a VA loan, or someone eyeing a jumbo loan for that waterfront property.
Call us today to get pre-approved and lock in your rate while the market is still in your favor.