Mortgage rates affect affordability, but home values are also influenced by inventory, buyer demand, employment, construction, property type, and local market conditions. A change in interest rates does not create a predictable one-for-one change in residential value.
Inventory can offset affordability pressure
When the supply of available homes is limited, competition among buyers can remain meaningful even as borrowing costs rise. Conversely, increasing inventory or weakening demand can place more pressure on prices and marketing times.
Thurston County is not one market
Olympia, Tumwater, Lacey, Yelm, Rochester, and other local communities contain different property types and buyer segments. Market conditions should be analyzed at the level that actually competes with the subject property.
Because this article originated in 2024, current appraisal conclusions should rely on current or effective-date-specific market evidence rather than historical market commentary.