Mortgage Rates in Washington
Due to the current economic environment in the United States, mortgage rates are at all time lows for those borrowers that can qualify for a loan. Mortgage rates can vary from state to state depending on many factors, some of which include delinquency rates, early payoff rates, home value trends and overall competition. Washington State and the Seattle Metropolitan area usually have interest rates in line with the national average; however, you will often find local mortgage companies such as Sammamish Mortgage offering rates and costs far below the national averages due to low overhead, a streamlined process and excellent payment history on the loans originated over the past 19 years.
Current Mortgage Trends
For the past few years interest rates have remained exceptionally low, consistently staying below 5.00% on a 30 year fixed mortgage. During this time many opportunities have presented themselves to borrowers as interest rates have dipped into the low 4’s on several occasions and actually dipping below the 4.00% mark in the past month. As the housing market and economy as a whole continue to struggle, economists are expecting rates to remain near historically low levels in the coming months. With low inflation and a global economy facing major hurdles; pressure pushing interest rates higher is currently non existent. With that said, any improvement in the domestic or global economy could put immediate and severe pressure on long term rates. While the Federal Reserve has stated that it fully intends on keeping rates low, long term interest rates are determined by the open market. Any shift in future expectations can mean quick and severe moves for mortgage rates.
Good Time To Buy?
Due to record low interest rates and home prices down by almost 40% since the peak of the market, many people are taking this opportunity to purchase properties as their primary residence and as an investment. With home affordability at exceptional, the risk of purchasing a new home is as low as it has been in over a decade. Those people who do their due diligence in finding the right property and look at it as a long-term investment will likely look back and view this as one of the best financial opportunities of their lifetime. The days of easy property flipping are still long gone; however, savvy buyers can and will be rewarded once again.