The national economy is shifting gears, and if you’re planning a home purchase in Seattle, Kirkland, or Bellevue, these changes matter. The latest reports show the job market losing momentum, inflation settling near expectations, and home prices still holding steady with growth projected ahead. Here’s how it all breaks down and what it could mean for buyers in our area.
The Bureau of Labor Statistics revised job growth figures down by over 900,000 positions for the year ending March 2025. That’s a monthly overstatement of around 76,000 jobs—proof the labor market hasn’t been as strong as it first looked.
For buyers in Seattle, Kirkland, and Bellevue, this shift could signal a more favorable environment if the Federal Reserve leans further toward lowering rates. A softer job market often pushes policymakers to make borrowing more affordable, creating opportunities for homebuyers.
New unemployment claims climbed to 263,000, the highest since 2021. Continuing claims held above 1.9 million for the 16th straight week. That consistency shows it’s taking longer for people to land new work once unemployed.
Locally, that could mean more cautious consumer behavior, but it also increases the likelihood of lower borrowing costs ahead—something that matters to anyone eyeing homes in Bellevue’s competitive market or Kirkland’s lakefront neighborhoods.
Inflation numbers came in largely as expected, with annual CPI at 2.9% and core inflation (excluding food and energy) at 3.1%. Energy costs, especially gas, were the main drivers of the recent bump.
What’s important for Seattle-area buyers is that the Fed now has more room to prioritize the job market. Lower inflation pressures mean policymakers can focus on easing rates to support employment, which could trickle down into more favorable mortgage rates for families in Kirkland and Bellevue.
Producer prices cooled in August, dropping 0.1% after a July spike. Over the past year, wholesale prices grew 2.6%, down from 3.1%. These numbers matter because they influence the Fed’s preferred inflation gauge, the PCE index.
In plain terms, this is another green light that interest rates could trend lower in the near future—good news for borrowers across Seattle’s Eastside who want to lock in financing before demand heats up again.
While home price growth slowed slightly in July, national values are still on the rise. Forecasts call for nearly 4% growth over the next year. For example, a $700,000 home in Kirkland appreciating at 4% annually would gain $28,000 in value in just 12 months.
That’s why experts continue to call real estate one of the strongest long-term wealth-building tools. In competitive markets like Seattle, Kirkland, and Bellevue, locking in a home now could mean both monthly payment stability and equity gains down the road.
Rates could ease if the Fed focuses more on supporting jobs.
Home prices are still climbing, making now a smart time to buy before appreciation pushes values higher.
Local demand remains strong, especially in desirable areas like Bellevue and Kirkland.
If you’re thinking about buying or refinancing in Seattle, Kirkland, or Bellevue, this is your moment to get prepared. The combination of easing inflation, potential rate cuts, and continued home price growth makes late 2025 an opportunity worth seizing.
Ready to explore your options? Contact us today to see how we can help you lock in financing before competition and rates shift again.