The Fed finally made a move and cut the rate down a quarter and has indicated a willingness to consider another in December when they meet again. This action did have a positive effect on mortgage rates. Most people can now qualify for a loan in the 6s and few may find themselves in the upper 5s. This is a very healthy rate and should help keep the housing market moving in a positive direction.
For retirees looking to find their home for the golden years, a low rate can really open up the inventory options. Oregonians are still flocking to SW Washington to save on income taxes in Oregon.
Now the "T word" is out, I'm sad to report that the State of Washington passed one of the biggest if not the largest ever tax hike this year. We still do not suffer under an oppressive income tax like our southern neighbor but a great deal of other taxes we spiked during the latest legislative session. The current legislature loves taxes, it seems they want to be just like California and leave no dollar untaxed. Our Governor tends to drool all over himself when signing new tax bills presented to his desk in Olympia.
For retirees taxation is a really big inhibitor to comfortable living. Washington remains a better than average location from a retirees standpoint, but our strong leverage has been softening over time. Higher taxes and some of the most expensive real estate in the country has made us a little tougher to swallow for newly retiring seniors.
Unfortunately we are still a magnet for retiring Californians, many of whom elected the lineup of idiots that have destroyed that state, now they are registering to vote here. It's no surprise our legislature seems to be emulating California's and leading us to make the same mistakes they made in the formerly "Golden State."
Washington still remains the only West Coast state to continue growing while Oregon and California have seen retractions in population, and in Oregon's case economic output. California is still enjoying some gains in GDP but falls behind Washington when measured per capita.
I still feel that Washington is a good spot to land as a retiree especially if you want to due part time consulting, or other jobs in the gig economy in the early years of retirement. Washingtons strong economy provides opportunities for seniors to earn good side scratch income to supplement their fixed retirement earnings, probably more so than any other West Coast State.
