Economists See Steady Growth Ahead — What It Means for Rates and Housing Demand

The latest Blue Chip Economic Indicators survey of leading economists points to slightly stronger growth ahead — and continued uncertainty about when the Federal Reserve will start cutting rates.

Economists now expect the U.S. economy to keep expanding modestly, but not fast enough to prompt immediate rate cuts. That outlook suggests mortgage rates will likely remain rangebound in the near term, keeping borrowing costs elevated for buyers.

For the housing market, this mix of steady growth and delayed rate relief has two practical takeaways:

• Affordability remains tight, with higher mortgage rates limiting some buyers’ purchasing power.

• Demand remains supported, as healthy labor markets and incomes continue to drive underlying housing activity.

Local View: Seattle and the Puget Sound Region

Here in Washington, the balance between modest growth and elevated rates is playing out through rising inventory levels. Recent data from the Northwest Multiple Listing Service show more homes coming on the market across local counties, giving buyers a bit more choice.

Still, buyer activity is likely to respond more to shifts in mortgage rates than to national GDP headlines. If rates soften even slightly, pent-up demand could surface quickly.

Sources:
_{Wolters Kluwer / Blue Chip Economic Indicators (October–November updates)
Titan WCI Market Commentary
Northwest Multiple Listing Service}