Every month, Windermere Chief Economist Jeff Tucker shares a national housing and economic update. While these trends impact markets across the country, buyers and sellers in North Central Washington often ask what they actually mean locally.
Below are some of the biggest takeaways from Jeff's latest market update and what they could mean for real estate activity in Chelan, Manson, Wenatchee, East Wenatchee, Leavenworth, and surrounding communities.
Why are economists paying attention to oil prices right now?
Oil prices affect much more than what we pay at the gas pump.
As of mid-June, oil prices have fallen to approximately $78 per barrel after significant volatility earlier this spring. Lower energy costs can help reduce inflation pressure across the economy because transportation, manufacturing, and many everyday goods rely on fuel.
For consumers, lower energy costs can eventually help improve affordability and support overall economic stability.
Source: Windermere Economics, June 2026.
Is inflation still a concern?
Yes, but there are signs that some pressures may ease.
Inflation was running at approximately 4.2% year-over-year in May, which is higher than many economists would like to see. Rising costs throughout the supply chain have continued to impact prices across the economy.
The good news is that lower oil prices may help reduce some of those cost pressures in the months ahead.
Source: Windermere Economics, June 2026.
Why does the Producer Price Index matter?
The Producer Price Index (PPI) measures cost pressures earlier in the supply chain before those costs reach consumers.
The latest reading showed PPI increasing to 6.2%.
When businesses face higher costs, those expenses can eventually be passed on to consumers through higher prices. Economists will be watching closely to see whether falling oil prices help reduce these pressures in the months ahead.
What is happening with mortgage rates?
Mortgage rates remain elevated, but they have started moving in a more favorable direction.
Both Freddie Mac and Mortgage News Daily reported average 30-year mortgage rates slightly above 6.5% in mid-June.
While rates remain higher than many buyers experienced in recent years, recent declines in Treasury yields have helped mortgage rates begin trending lower.
For buyers who have been waiting on the sidelines, even small rate improvements can significantly affect monthly payments and purchasing power.
Source: Windermere Economics, June 2026.
What is happening with housing inventory?
Housing inventory growth has slowed considerably.
Nationally, active listings were only about 2% higher than the same time last year.
This suggests that while buyers have more choices than they did during the extremely competitive market conditions of recent years, inventory is not expanding as rapidly as many analysts expected.
Are buyers still purchasing homes despite higher rates?
Surprisingly, yes.
Pending home sales increased approximately 5% year-over-year in May according to Realtor.com data.
This suggests that buyers may be adjusting to today's mortgage rate environment and continuing with their plans rather than waiting indefinitely for lower rates.
Source: Windermere Economics, June 2026.
What does this mean for buyers and sellers in North Central Washington?
Every local market behaves differently, but several themes stand out:
- Mortgage rates remain the biggest factor influencing buyer activity.
- Inventory is improving but remains relatively constrained.
- Buyers continue to enter the market when the right opportunity appears.
- Well-priced homes continue to attract attention.
- Market conditions increasingly reward preparation, pricing strategy, and local expertise.
Whether you're considering buying, selling, relocating, or simply keeping an eye on the market, understanding these broader economic trends can help you make more informed real estate decisions.
Contact
Arturo Zavala
509.630.6365
arturozavala@windermere.com
Address
Windermere RE/ Lake Chelan
134 East Woodin Ave
Chelan, WA 98816
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