It’s a hot seller’s market in the Pacific Northwest, and has been for quite some time.
Buyer demand continues to be very strong, which has helped keep home prices soaring in many centers throughout Washington, Oregon, Idaho, California, and Colorado.
But what exactly is behind the ongoing buyer demand?
The following infographic outlines a few key factors that are contributing to this trend.
There’s still a steady flow of buyers looking for homes today, but the market has changed significantly from the frenzied conditions of a few years ago.
Buyers are returning as affordability improves and more homes become available. Here are a few reasons why people are still motivated to buy a home.
Buyers are watching mortgage rates closely
Mortgage interest rates remain one of the biggest factors influencing homebuying decisions. Although rates are considerably higher than they were during the pandemic, affordability has improved somewhat as home-price growth has slowed and incomes have risen.
As of August 2026, the average rate for a 30-year fixed-rate mortgage is around 6.7%, according to Freddie Mac. That’s far above the ultra-low rates of 2020 and 2021, when 30-year mortgage rates were below 3%.
At the same time, today’s rates have been relatively volatile. Mortgage rates briefly moved below 6% earlier this year before rising again amid renewed inflation concerns and economic uncertainty.
Realtor.com currently expects mortgage rates to average about 6.3% for 2026, although actual weekly rates can move considerably higher or lower.
Rather than rushing into the market simply to beat rising rates, today’s buyers are weighing rates against home prices, inventory and their own financial circumstances. For some buyers, waiting for lower rates could mean facing stronger competition if more buyers return to the market at the same time.
The good news for sellers is that demand hasn’t disappeared. Realtor.com expects existing-home sales to improve modestly in 2026, while affordability gradually improves and buyers gain more negotiating power.
In other words, today’s buyers may be more selective than they were during the pandemic-era boom, but motivated buyers are still actively searching for the right home at the right price.
“Older millennial buyers are now entering middle age, and with that comes a shift.”
– Jessica Lautz, Deputy Chief Economist, National Association of REALTORS®
Millennials are becoming an increasingly established presence in the housing market as they move through their 30s and 40s. Although millennials are no longer the largest group of homebuyers, they remain an important source of demand, particularly among first-time and move-up buyers.
According to the National Association of REALTORS®, millennials accounted for 26% of homebuyers in the latest report, behind Baby Boomers at 42% and Gen X at 25%. Older millennials, ages 36 to 45, are increasingly leveraging home equity and higher incomes to purchase larger homes.
Millennials may have struggled to afford a home earlier in adulthood, but many older millennials are now in stronger financial positions. In fact, older millennial buyers had the highest median household income of any generation at $132,700 and purchased homes with a median size of 2,100 square feet.
Younger millennials still face significant affordability challenges, however, particularly because of high home prices, mortgage rates and limited inventory. Even so, millennials remain an important source of housing demand as they form households, raise families and move into larger homes.
“Rents are still well above pre-pandemic levels, but renters are seeing more relief as asking rents decline.”
– Danielle Hale, Chief Economist, Realtor.com
Traditionally, one of the more common reasons to rent is to avoid the upfront costs and long-term commitment of buying a home. But over recent years, the cost of rent has risen significantly, even though rental prices have recently begun to ease.
More specifically, median asking rents across the 50 largest U.S. metropolitan areas fell 1.5% year over year in June 2026, according to Realtor.com. That’s the 35th consecutive month of annual rent declines. Even with those recent decreases, rents remain 16.4% higher than they were in June 2019, before the pandemic.
So while renters aren’t currently facing rapidly rising rents nationwide, housing costs remain elevated compared with pre-pandemic levels. For some renters, that may strengthen the appeal of homeownership, particularly if they can afford the upfront costs and monthly mortgage payment.
At the same time, buying isn’t automatically cheaper. Realtor.com’s latest analysis found that renting a starter home remained more affordable than buying in all 50 major U.S. metros, although the savings gap has narrowed as mortgage costs have eased.
If you’re thinking about selling your house, today’s improving buyer activity is encouraging news. Let’s connect to begin the process of preparing and listing your home while motivated buyers are still searching.
Do you have questions about mortgage rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, WA, serving Colorado, Idaho, Oregon, Washington, and California. We offer many mortgage programs to buyers all over the Pacific Northwest, including our 15-year and 30-year fixed-rate mortgages, adjustable-rate mortgages, andjumbo loans, and have been doing so since 1992. Visit our website to use our mortgage calculator or to get an instant rate quote. Contact us today with any questions you have about mortgages or to get pre-approved for a mortgage.
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