What mortgage rates mean for Seattle-area homebuyers this spring

Lower mortgage rates could push up home prices in Seattle and nationwide if demand surges and inventory remains tight.

Why it matters: Steep borrowing costs are just one piece of the housing affordability crisis.

• Even with rates at historically high levels, home prices are still rising — partly because there aren't a lot of houses out there to buy.

State of play: Many homeowners aren't selling because they don't want to lose their low mortgage rates.

• U.S. rates for 30-year mortgages are down from 20-year highs, but still remain around 7% .
• Experts don't expect the Fed to cut interest rates until May or June, Axios' Emily Peck reports .

By the numbers: In the Seattle area, home prices jumped when mortgage rates dropped below 3% in early 2021.

• As rate hikes locked current homeowners in place, however, prices have remained high.

The fine print: Seattle's median home price has stabilized somewhat, but is still higher than it was pre-pandemic.

• The Seattle-area median price was around $750,000 in December 2023, compared to $568,500 in December 2019, per Redfin.

The bottom line: If rates come down, then supply would rise, as more existing homeowners sell and buy something new, says Daryl Fairweather, Redfin's chief economist.

• But with supply and demand both shooting up in equal amounts, "prices would remain high," Fairweather says.

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