That was quick.

Mortgage rates briefly dipped under 6% on Friday after the President’s tweet —
and just as quickly, they reverted back to ~6%.

Which is exactly what rates tend to do.
They revert to the mean.

The important part isn’t the dip.
It’s what it did.

Buyers are out again.

I’m hearing this directly from agents:

• Homes sitting 60–80+ days are suddenly getting multiple offers

• Well-appointed, updated homes are selling over list

• Activity picked up fast — even without rates staying “low”

That tells you something.

More inventory is coming:

• Some new listings in the next 1–2 weeks

• A larger wave after the President’s Day break in mid-to-late February

And as usual in Seattle, the spring market starts early.

One thing to watch closely:
As long as the President continues to use the pulpit (via posts and announcements), we should expect rate volatility — short swings up, short swings down.

Trying to “capture the bottom” isn’t a strategy.
You won’t be able to predict it.

For context:

• 30-year mortgage rates ended 2025 at their lowest point of the year (~6.15%)

• This is likely the general range we live in for a while

People keep asking:
“Is this a good market or a bad market?”

Media calls a market “strong” when prices accelerate quickly.
That’s not necessarily good for buyers.

Volatility Is Becoming the Theme

Volatility may be the defining feature of this market — and increasingly, it’s being driven by politics rather than fundamentals.

This week, reports of a Department of Justice investigation into Federal Reserve Chair Jerome Powell briefly rattled financial markets. While equity markets recovered and closed higher, the bond market reacted immediately.

The 10-year Treasury yield — which mortgage rates closely track — surged above 4.2%, its highest level since September 2025. That move translated directly into higher borrowing costs, with average 30-year mortgage rates jumping to approximately 6.22%.

This wasn’t driven by a sudden shift in inflation, employment, or housing fundamentals.
It was driven by uncertainty.

Analysts have warned that political pressure on the Federal Reserve — or even the perception of it — risks undermining the Fed’s independence. When that confidence weakens, investors demand higher yields to compensate for risk.

That’s how we get sharp, unpredictable swings.

The takeaway for buyers and sellers is simple:
Short-term rate movements are becoming harder to predict, shorter-lived, and increasingly headline-driven.

Trying to “time” mortgage rates in this environment is less strategy and more dumb luck.

Steady is good.
A slower, more balanced market is healthier.

And right now, that’s what we’re seeing.

Compared to last January, we’re entering 2026 on much stronger footing:

• Inventory is meaningfully higher year-over-year across King, Snohomish, Pierce, and Thurston

• Buyers have more choice than they did at the start of 2025

• Pending sales are flat to up in many counties

• Closed sales are softer largely due to longer timelines — not weaker demand

Translation:
More options. Real demand. Early signs of renewed activity.

This isn’t a frenzy.
But it is a market that’s waking up.

If you’re trying to time headlines, you’ll miss it.

The story here isn’t that rates are falling or rising dramatically.
It’s that volatility is back — and it’s being driven by forces most buyers can’t forecast or control.

Rates may dip.
They may spike.
And they may reverse just as quickly.

What is predictable is behavior:

• Buyers respond to perceived opportunity

• Sellers with strong homes still attract competition

• Well-priced, well-prepared properties move — even in choppy conditions

That’s why the early signs matter more than the headlines.

This isn’t a frenzy.
But it is a market where hesitation carries a cost — and clarity beats prediction.

Here to help.
Happy to talk shop.

Justin H Gazabat
Broker | PNW, Seattle, Ballard, East Side
www.JustinGazabat.com
206-424-9497

PS: If anyone in your social or work circles considering a move, just send Me an intro text or email with their best contact info, make sure everyone is CC’d and I’ll take care of the rest! I promise to take great care of them, serve them well, make you look good, plus help them get great results.