Inventory Continues to Expand as Summer Home Sales Gain Momentum
Housing inventory continued to expand across the NWMLS service area in June, giving buyers the greatest selection of homes this year. Active listings increased 16.4% year over year and 8.0% from May, reaching 23,088 homes on the market. Buyers had access to more than 1,700 additional homes than the previous month, continuing the market’s gradual shift toward more balanced conditions.
Despite elevated mortgage rates and ongoing affordability challenges, buyers remained active. Closed sales increased 2.3% compared to June 2025 and 10.2% from May, reflecting continued demand as the summer market gained momentum. Pending sales declined modestly from both the previous month and a year ago, while the median sales price held steady at $650,000 for the second consecutive month, though it was 3.0% lower than June 2025.
Consumer activity reflected a typical seasonal slowdown following the peak spring market. Keybox activity and scheduled showings both declined from May, while 25,583 listings received at least one showing during June—an 8.7% increase from one year ago. Additionally, 73.6% of listings across the NWMLS service area qualified for down payment assistance programs, continuing to expand affordability opportunities for eligible buyers.
While inventory continues to increase across much of Washington, mortgage rates remain an important factor influencing affordability and buyer activity.
“At the end of February 2026, 30-year fixed mortgage interest rates had reached their lowest point since September 2022: 5.98%,” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER). “Then the war with Iran started, resulting in increased inflation and, in turn, higher interest rates. By the end of June, rates had risen by just over half a percentage point to 6.49%, which was also the average rate for the month and slightly higher than the average for May. Not surprisingly, median home prices across the NWMLS service area were unchanged from the previous month and 3% below last year’s level. Closed sales increased about 2% year over year but continued to lag the approximately 16% increase in active listings, consistent with the decline in median prices.”
Source: NWMLS
Mortgage Rates Jump to Highest Level in Nearly a Year as Iran War Reignites
Mortgage rates surged this week to levels not seen in 11 months as the conflict between the U.S. and Iran continued ratcheting up with no resolution in sight, putting renewed upward pressure on energy prices and bond yields.
The average rate on 30-year fixed home loans jumped to 6.55% for the week ending July 16, up 6 basis points from 6.49% the previous week and the highest since August 2025, according to Freddie Mac. For perspective, rates averaged 6.75% during the same period in 2025.
“The 30-year fixed-rate mortgage averaged 6.55% this week,” says Sam Khater, Freddie Mac’s chief economist. “Purchase application demand has weakened recently, but housing affordability is more favorable and housing inventory continues to rise, thus the backdrop for prospective homebuyers is modestly improving.”
An encouraging inflation report earlier this week that showed CPI headline inflation cooling to 3.5% and core inflation easing to 2.6% raised hopes for a pullback in borrowing costs, but those were dashed by the flare-up in hostilities in the Middle East, where American and Iranian forces continued to trade airstrikes in fighting over control of the Strait of Hormuz.
Speaking with Fox News chief foreign correspondent Trey Yingst Tuesday, President Donald Trump threatened to target Iran’s infrastructure “very hard” unless the country’s leaders resume peace talks.
“Next week it gets really bad for them because next week comes the power plants,” said Trump. “Next week comes the bridges. We’re gonna knock out all their power plants. We’re going to knock out all their bridges unless they get to the table and negotiate.”
Tehran responded to the president’s sabre-rattling rhetoric by threatening to carry out airstrikes throughout the region.
This escalating tension pushed oil prices and Treasury yields higher, dragging mortgage rates up with them.
Realtor.com® senior economist Hannah Jones notes that the recently released midyear forecast update still calls for mortgage rates to ease modestly over the second half of the year, and this week’s inflation print supports that view over the long run.
Yet, Jones concedes that the near-term path remains “hostage” to how the Iran situation develops.
“The housing market has otherwise continued shifting in buyers’ favor this year, with prices cooling, inventory building, and sellers offering more concessions.,” says the economist. “A cooler CPI reading is a step in the right direction, but until mortgage rates actually follow suit, buyers will keep feeling the pinch of stubbornly high borrowing costs even as other conditions improve.”
Breakouts! – Residential SOLD Average
Surprising Home Price Growth
One of the most common questions first‑time buyers ask is also one of the hardest to answer:
“Should I wait?”
Waiting can reduce price risk — but it increases other risks.
Yes, buyers who purchased near the top of a cycle sometimes had to wait years for prices to recover in real (inflation‑adjusted) terms. That’s real, and it’s painful.
But historically, waiting also came with tradeoffs:
- Mortgage rates were often higher when prices softened
- Inventory didn’t necessarily improve
- Rents continued to rise
Across the nine cycles since 1891, there has never been a sustained period when prices, rates, and affordability all improved simultaneously.
New Conforming Loan Amount Limits for 2026:
**Owner Occupied/Single Family Residence
All loans are with a one-point origination fee.
740 credit score and 20% down payment for conventional
NEW CONFORMING LOAN AMOUNT LIMITS FOR 2026:
KING/PIERCE/SNOHOMISH COUNTY $832,750.00
High Balance $1,063,750.00
Gina Brown (NMLS# 115337)
Senior Loan Officer
🏢 C2 Financial (NMLS# 135622)
425-766-5408
ginabrown@C2financial.com
www.loansbygina.com
