The latest economic data paints a mixed picture. Inflation is cooling, home sales are starting to pick back up, but overall economic growth has slowed more than expected.
For buyers and homeowners in Marysville, Bothell, and Redmond, these trends are important because they influence mortgage rates, affordability, and how competitive the market could get in the coming months.
Here’s what you need to know.
Inflation data brought some encouraging news.
Shelter costs — which make up a large portion of inflation — were relatively mild. Rent increased just 0.1%, the smallest monthly rise in years, helping ease overall pressure.
The delayed PCE report (the Fed’s preferred inflation measure) also showed inflation trending slightly lower than expected.
What this means locally:
For buyers in Bothell and Redmond, where home prices tend to be higher, easing inflation is a positive sign for long-term mortgage rate stability. In Marysville, where affordability drives demand, even small improvements in rates can bring more buyers into the market.
After a slower start to the year, existing home sales rose 1.7% in February. Inventory also increased, with more homes becoming available compared to last month and last year.
Why this matters:
Improving affordability and slightly better rate conditions are starting to bring buyers back.
However, inventory is still growing slowly. If demand increases faster than supply, home prices could begin rising again.
Local takeaway:
In Redmond and Bothell, where competition can heat up quickly, this could mean tighter markets heading into spring. In Marysville, increased activity could give sellers more leverage after a quieter winter.
Housing starts increased — but there’s a catch.
The entire increase came from multi-family construction, while single-family home construction declined.
Permits for future construction also dropped, suggesting fewer new homes are in the pipeline.
What this means:
For buyers looking in Marysville, Bothell, or Redmond, this means competition for single-family homes may remain strong.
The second estimate of Q4 GDP showed the economy grew at just 0.7%, a sharp drop from previous quarters.
This slowdown was largely tied to reduced government spending during the shutdown.
On the labor side:
Bottom line:
The economy is slowing, but not stalling. This type of environment often keeps the Federal Reserve cautious when it comes to rate decisions.
Several important updates are coming:
These reports will help shape expectations for mortgage rates heading into spring.
Mortgage bonds continued trending downward last week, influenced in part by rising oil prices.
Meanwhile, the 10-year Treasury yield remains in a wide range. Since mortgage rates often follow Treasury yields, any breakout could impact rate direction.
Here’s the big picture:
For buyers and homeowners in Marysville, Bothell, and Redmond, this is a transitional market.
Not overly hot. Not frozen either. Just… warming up slowly like your car on a cold Washington morning.
At Home Right Lending, we’re a mortgage brokerage — not a lender. That means we work with multiple lenders to help you find a loan solution that fits your situation, especially if your income or scenario isn’t “cookie-cutter.”
Whether you’re buying in Marysville, upgrading in Bothell, or refinancing in Redmond, we’re here to help you navigate your options with clarity and confidence.
Reach out today and let’s build a plan before the market picks up speed.