In response to week global growth and trade tensions, the Federal Reserve yesterday lowered short term interest rates by a quarter point. For many years mortgage rates followed Federal Reserve rates as they rose and fell. Occaisonally we have seen mortgage rates react ahead of Federal Reserve moves. We believe that is the case now as we saw mortgage rates drop back in April to their current levels. We predict rates will stay steady in the near future hovering generally under 4%. This is great news for buyers.
The other significant news is that the Case-Shiller index has finally gone negative for the greater Seattle area for the first time in many years. We have seen the growth in prices slow over the past year and finally the latest report shows Seattle area prices down 1.2%. We have seen mixed median price reports for a few months now but with the Case-Shiller numbers down along with weakness in the median price numbers we can now say prices in the area are flat and trending downward ever so slightly. Perhaps a great time for sellers to cash in on equities that have grown substantially over the past several years.