KIRKLAND, Washington (April 7, 2022) – Rising mortgage rates are not yet slowing home sales in most areas across Washington state, according to several brokers who commented on the latest statistical report from Northwest Multiple Listing Service. The report showed a 7.4% year-over-year drop in pending sales, but brokers suggested the decline is likely a reflection of limited supply.

“Typically, by now, we would start to see rising mortgage rates impacting homes sales and/or prices,” observed Matthew Gardner, chief economist at Windermere Real Estate. “That has yet to happen despite rates rising significantly since the start of the year.”

Freddie Mac reported the average rate for a 30-year loan rose to 4.56% last week, with rates climbing at the quickest pace in almost three decades.

Gardner said he expects mortgage rates to continue trending higher in the coming months, adding, “I will be watching to see if there are any negative market impacts, but as of now, I’m not too concerned.”

Northwest MLS brokers reported 10,059 pending sales (mutually accepted offers) during March across 26 counties. That’s down from the year-ago figure of 10,863, but compared to February, the volume of pending sales jumped nearly 31%.

Broker Dean Rebhuhn, owner at Village Homes and Properties, also said rising mortgage rates have not slowed activity. “However, if homes are priced over the market, savvy sellers are making price adjustments.” For now, Rebhuhn said multiple offers “are still the rule. Buyers are making strong offers, pre-inspecting homes, and making sure financing is in place.”

Well-paying jobs and lifestyle needs are driving the market, with some buyers using investments, 401K funds, and family assistance, according to Rebhuhn. He noted Grays Harbor and Ocean Shores offer “good inventory and great values.” Prices in Grays Harbor County surged nearly 25% from a year ago, rising from $280,000 to $349,950. That’s about $489,000 less than the median price in King County.