If you’re thinking about buying or selling in 2027, here’s the honest headline: nobody knows exactly where rates and prices will land, including the forecasters. This fall’s forecasts moved a lot in just a few weeks. So instead of making a prediction, we’ll show you what the experts expect, what’s happening in Snohomish County right now, and a plan that works whichever way the market goes.
What the Forecasters Expect
| 2027 outlook | What they’re saying |
|---|---|
| Mortgage rates | Fannie Mae: about 7.5% on average;1 the MBA also expects rates above 7%2 |
| Home prices (national) | Fannie Mae: +0.6%; Zillow: +1.1% (Sept 2026 to Sept 2027); MBA: slowing to about +0.5% by late 202713 |
| Existing-home sales | Fannie Mae: about 4.06 million, less than 1% above 20264 |
A few cautions. These are national numbers, not Snohomish County numbers. And forecasts change fast: Fannie Mae’s 2027 rate forecast was 6.7% a month before it jumped to 7.5%.1 For reference, Freddie Mac’s 30-year average was 7.24% in late October.5
What Snohomish County Looks Like Heading Into Winter
More choice, less urgency is the short version. NWMLS data for June 2026 shows Snohomish County inventory up 28.6% year over year, to 2,003 homes, with months of supply rising from 2.4 to 3.2.6 A later NWMLS recap put September at about 3.85 months of supply, with active listings up roughly 44%.7 By the usual rule of thumb, under four months still leans toward sellers, and four to six months is balanced.8
New construction is a bit looser at about 3.7 months of supply, and builders are competing with rate buydowns and closing-cost incentives.9
What this means for you: buyers have more homes to compare and a little more room to negotiate, but this isn’t a buyer’s market, and well-priced homes still move. Sellers face more competition than last year, which makes accurate pricing matter more.
If You’re Buying in 2027
- Plan around a payment, not a rate. Get pre-approved, then run your budget at today’s rate and a little higher. Our mortgage calculator is a good place to start.
- Compare Loan Estimates. This matters most with builder incentives, because a buydown, a closing-cost credit, and a lower price can add up very differently.
- Look at down payment help early. Washington’s Home Advantage down payment assistance is a 0% interest, payment-deferred second loan worth 3%, 4%, or 5% of the first mortgage, and the standard program doesn’t require first-time buyer status. Income limits apply.10 Our first-time homebuyer’s guide walks through it.
- Use the extra inventory. More listings means more room to ask for repairs or credits, as long as your offer is strong.
If You’re Selling in 2027
- Price to today’s market, not last year’s. With listings up sharply, overpriced homes tend to sit. Ask for a free home valuation before you choose a number.
- Prep before you list. Fix the small things, declutter, and line up photos so you can move when the timing is right.
- Know your costs. In Washington, the seller is responsible for the real estate excise tax (REET).11 The state’s price brackets are scheduled to adjust Jan. 1, 2027. One local attorney’s summary shows the first bracket moving from $525,000 to $551,000, a modest change, so confirm current rates with your escrow officer.12
Your “Ready by January” Checklist
- Decide whether you’re buying, selling, or both, and set a target timeline.
- Buyers: get pre-approved and compare at least two lenders’ Loan Estimates.
- Sellers: request a home valuation and walk through repairs and prep.
- Gather your documents: pay stubs, tax returns, and bank statements for buyers; payoff and HOA information for sellers.
- Narrow your neighborhoods. Our Edmonds vs. Mukilteo vs. Mill Creek comparison is a good starting point.
Frequently Asked Questions
Will mortgage rates drop in 2027?
Fannie Mae and the MBA currently expect rates to stay high, at or above 7%. Their forecasts changed sharply this fall, so plan around a range.
Is Snohomish County a buyer’s market?
Not by the usual measure. Inventory is up, but supply of roughly 3 to 4 months still leans toward sellers or a balanced market.
Should I wait for rates to drop?
It depends on your budget and timeline. Some buyers purchase now and look at refinancing later if rates fall, but nothing is guaranteed. Talk to your lender about your numbers.
Do the REET brackets change in 2027?
The state’s graduated brackets are scheduled to adjust on Jan. 1, 2027. Confirm current figures with your escrow officer.
Let’s Make a Plan
Whether 2027 is your year to buy, sell, or both, we’d love to help you build a plan around your numbers. Reach out and let’s talk.
This post is general information, not financial, tax, or legal advice. Forecasts and market data change, so confirm current figures before making a decision.
