Snapshot of the National Market and Comparing the First Half of 2025 to the First Half of 2024

 Interest Rates

• Yesterday: Dropped briefly to 6.5%, now back to 6.625% (30-year fixed).
• Rates have hovered around 6.625% for a month, blipping occasionally.
• Some buyers are still hearing 7.25% quotes—not accurate for most.

Historical context:

• 2000–2008: Rates mostly stayed above 6%.
• 2008–2021: Rates dropped below 5%—a rare “golden era.”
• Current rates are not unprecedented.

Mortgage Affordability Stats from the NAR Chief Economist

• Median monthly mortgage payment:
  • 2017: <$1,000
  • 2025: ~$2,100
• That’s more than doubled in 8 years.
• A $500,000 home with 6.6% interest = ~$4,200/mo mortgage.
• Average homebuyer is now 38 years old (up from 36 in 2023).
• Entry-level buyers are squeezed by down payments and debt-to-income ratios.

 Buyer Psychology

• Many buyers say: “I can’t afford it, so I’m out.”
• But interest in homeownership is growing:
• Mortgage applications began rebounding Oct 2024.
• Pre-approval volume is rising steadily.

 Spokane County

Sales Volume:  3.8%

Median Price:  2.4% ($425,000)

New Listings:  7.6%

Active Inventory:  16.5%

 Kootenai County

Sales Volume:  4%

Median Price:  3% ($544,000)

Total Inventory:  16.5% (identical to Spokane)

 ADDITIONAL INSIGHTS

• Retiree & Move-Down Buyers
• 88 million homeowners nationwide
• 35 million own free and clear (no mortgage)
• Many seniors hesitant to buy again if it means having a payment