# Seattle housing market braces for 'short-term pain'

> Fed rate hike may ease Seattle homebuying woes with short-term pain.
- Title: Seattle housing market braces for 'short-term pain' | Shortify
- Summary: Fed rate hike may ease Seattle homebuying woes with short-term pain. Seattle housing market faces short-term pain from Fed rate hikes but expects long-term…
- Keywords: seattle, fed rate hike, mortgage rates, seattle housing market, 30-year fixed mortgage, zillow, crosscountry mortgage, cmg home loans, redfin, inflation, news, local
- Source: Seattletimes — https://seattletimes.com/business/real-estate/for-seattle-housing-market-will-feds-rate-hike-hurt-or-cure
- Read time: 2 min
- Topics: seattle, fed rate hike, mortgage rates, seattle housing market, 30-year fixed mortgage, zillow, crosscountry mortgage, cmg home loans, redfin, inflation, news, local
## Fed rate hike impact
The Federal Reserve’s decision this week to hike its key rate by a quarter point felt like another rain cloud for Seattle’s housing market amid stubbornly high mortgage rates.
## Mortgage rates rise
Since the beginning of the year, the average rate on a 30-year fixed mortgage increased from 6.2% to just below 7% this week, the highest level in more than 18 months.
## Mortgage rates predicted
Windermere Principal Economist Jeff Tucker predicted mortgage rates will remain around 7% for the rest of the year, a turn from many economists’ expectations at the start of the year that rates would hover around 6%.
## High mortgage costs
For a midtier home with a 20% down payment, the monthly mortgage payment hovers close to $5,000, including insurance and other costs.
## Homebuyers struggle
Annamarie Scantland, who with her husband has spent three years weighing whether they can afford a house, said high mortgage rates make home buying feel 'completely out of reach' for them.

> It feels discouraging because it just feels like our future is kind of up in the air in terms of buying a home.
## Inflation pressures
Nikki Dutton, a senior loan officer at CrossCountry Mortgage in Tacoma, noted high gas and grocery prices add to homebuyers’ struggles beyond mortgage rates.

> I think that the experience of having less money, the experience of having to put their groceries on credit cards, that’s the problem, not a quarter-point interest rate hike.
## Long-term gain
Danny Meier, a loan officer with CMG Home Loans in Snohomish, said the Fed’s rate hike could bring 'short-term pain, long-term gain' for the housing market.

> If the rate hike helps get inflation under control, it will amount to 'short-term pain, long-term gain'.
## Sellers face pressure
After two months on the market and three price drops, Kari Nipert’s three-bedroom home in Gig Harbor is still waiting for a buyer.

> It’s just frustrating because I don’t know what to do.
## Market uncertainty
Redfin data shows nearly half of Seattle-area sellers offered concessions from June through August, down from 70% a year earlier, as homebuyers and sellers navigate rising costs.
## Key takeaway

Seattle housing market faces short-term pain from Fed rate hikes but expects long-term gains as mortgage rates stabilize.